Canadian inflation beats expectations in June – USD/CAD falls

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It’s all positive news for the C$: inflation is up to 2.4% and core inflation to 1.8%. Month over month, figures came out as expected: CPI at +0.1% and core CPI at -0.1%. Wholesales sales jumped by 2.2%. All figures are above expectations. Canada was expected to report a m/m rise of 0.1% in headline CPI and a slide of 0.1% in core CPI for the month of June. Year over year, CPI carried expectations of remaining unchanged at 2.3% and core CPI at 1.7%. Canadian Wholesale Sales were predicted to remain flat in June after a rise of 0.5% in May.

USD/CAD traded around 1.0750 towards the release. It now fell to 1.0715 and the move continues.

The C$ traded choppily after the Canadian rate decision, but didn’t go anywhere fast. The Bank of Canada is in neutral mode and waiting to see the next direction of the Canadian economy before acting.

The round level of 1.07 provides some support. The next line is 1.0660. For more, see the Canadian dollar prediction.

Here is the chart:

USDCAD down July 18 2014 technical chart after inflation data from Canada

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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