Canadian Core CPI, is considered on of the most important inflation indicators. Core CPI excludes the most volatile items which are included in CPI, hence it is considered a more reliable measurement of inflation. A reading that is higher than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Friday at 12:30 GMT. Indicator Background Core CPI differs excludes eight volatile components which are found in CPI, such as food and energy prices. The indicator is closely watched by the Bank of Canada, and inflation levels are an important factor in the central bank’s monetary policy stance. Core CPI posted a modest 0.2% in April, beating the estimate of 0.1%. The forecast for the May reading stands at 0.3%. Will the indicator surprise the markets and beat the estimate? Sentiments and levels The Fed kept rates at current levels at this Wednesday’s policy meeting and sounded cautious about the economy. Still, market sentiment is fairly positive towards the US dollar, which has pushed its Canadian cousin back above the 1.30 level. Â So, the indicator is bullish on USD/CAD towards this release. Technical levels, from top to bottom: 1.3367, 1.3219, 1.3081, 1.2990, 1.2780 and 1.2663 5 Scenarios Within expectations: Â 0.0% to 0.6%: In this scenario, USD/CAD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 0.7% to 1.1%: A reading above expectations could push the pair below one support level. Well above expectations: Above 1.1%: An unexpectedly sharp rise in inflation could push USD/CAD downwards, breaking two or more levels of support. Below expectations: -0.5% to -0.1%: A weak release could push USD/CAD upwards, with one resistance level at risk. Well below expectations: Below -0.5%: A reading deep in negative territory would likely hurt the loonie, and the pair could break two or more resistance levels. For more on the Canadian dollar, see the USD/CAD forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next BOJ in July – fresh easing is on the cards Yohay Elam 6 years Canadian Core CPI, is considered on of the most important inflation indicators. Core CPI excludes the most volatile items which are included in CPI, hence it is considered a more reliable measurement of inflation. A reading that is higher than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Friday at 12:30 GMT. Indicator Background Core CPI differs excludes eight volatile components which are found in CPI, such as food and energy prices. The indicator is closely watched by the Bank of Canada, and inflation levels are… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
