Canadian Dollar Eases after June CPI Report Comes in Just Under Forecast
THE TAKEAWAY: CAD Consumer Price Index (JUN) > 0.0% versus +0.1% expected, from +0.2% (m/m), +1.2% as expected, from +0.7% (y/y) > CAD Bank Canada CPI Core (JUN) > -0.2% as expected, from +0.2% (m/m), +1.3% as expected, from +1.1% (y/y) > USDCAD BULLISH
USDCAD 1-minute Chart: July 19, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Inflation in Canada rose back to its fastest pace in four months but remains stubbornly low overall, and as a result, the Canadian Dollar has weakened marginally following the release. The data, released at 08:30 EDT/12:30 GMT, came in mostly in line, with only the headline monthly reading – the least important of the four reported – missing by one-tenth of a percent.
Following the announcement, the USDCAD moved up marginally, from C$1.0364 ahead of the release to as high as 1.0390 soon after. At the time this report was written, the pair had eased back to 1.0387.
--- Written by Christopher Vecchio, Currency Analyst
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