We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇨🇦CAD: 0.33% 🇦🇺AUD: 0.31% 🇬🇧GBP: -0.07% 🇯🇵JPY: -0.15% 🇨🇭CHF: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/olQr1de3Ie
  • Italy will also receive EUR 91bln in loans under recovery plan
  • Reminder, Italian Economy Minister said at the beginning of the month he was confident the new European Recovery Fund will make available at least EUR 100bln..... BTPs off best levels https://t.co/f9Y6NRdmhn
  • Italy to be allocated EUR 81.8bln in grants Spain to be allocated EUR 77.3bln in grants France to be allocated EUR 39bln in grants under EU proposal
  • EU to Unveil Covid-19 Recovery Fund Plan, Swiss Franc Sinking - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/05/27/EU-to-Unveil-Covid-19-Recovery-Fund-Plan-Swiss-Franc-Sinking.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #coronavirus #EU #CHF
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.69% France 40: 1.65% Germany 30: 1.61% FTSE 100: 1.51% US 500: 1.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2TnK1MAjal
  • EUR/USD Price Rejected at Resistance, Now Eyes the Support - EUR vs USD Outlook more details in the link: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/05/27/EURUSD-Price-Rejected-at-Resistance-Now-Eyes-the-Support-EUR-vs-USD-Outlook-MK.html?CHID=9&QPID=917714 https://t.co/1WxJZCpEbg
  • FTSE 100 +1.70% @ 6,162 - pushing back towards 50% Fib retracement and early March gap...#ftse #ftse100 @DailyFXTeam https://t.co/gC5fRZHKES
  • EU Commission to mobilise EUR 750bln for European recovery fund - EUR 500bln grants - EUR 250bln loans $EUR
  • BREAKING: Reports on the wires that the EU is considering an EUR750bn virus recovery plan. EU Commission to unveil details later today. #EUR #EuropeanUnion #COVID19
Loonie Crashes Past a 3-Year Low on Further Weak Inflation

Loonie Crashes Past a 3-Year Low on Further Weak Inflation

2013-12-20 14:23:00
Benjamin Spier, Technical Strategist
Share:

Talking Points:

  • Canadian Inflation rebounds from a 6-month low, but still weak
  • Poloz voices concerns over inflation risks
  • USD/CAD rises to a 3-year high

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Canadian Dollar fell to a 3-year low against its US counterpart, as annual inflation was reported to have rebounded from a 6-month low, but still disappointed expectations, in November.

Consumer prices rose 0.9% from November of 2012, lower than expectations for 1.0% inflation and higher than the 0.7% annual inflation reported in October. Energy prices rose 2.3% annually, leaving inflation at 0.8% when excluding energy prices. Canadian retail sales also disappointed expectations for a 0.2% rise in October by instead declining 0.1%.

The Bank of Canada maintains a policy of to keep inflation between 1% to 3%, and inflation has remained below the bank’s 2% target since May of 2012. Earlier this month, BoC Governor Poloz said the risks of inflation staying below target appear to be greater. The lower inflation may have been one of the reasons the BoC stopped mentioning a rate hike possibility in October.

Therefore, the lower than expected inflation may have driven the Loonie lower against the US Dollar, but a simultaneous better than expected US GDP release was also responsible for the 3-year low. USD/CAD may next see resistance by a February 2010 high at 1.0780.

New to Forex? Watch this video

USD/CAD 1-Minute: December 20, 2013

Loonie_Crashes_Past_a_3-Year_Low_on_Further_Weak_Inflation_body_Picture_1.png, Loonie Crashes Past a 3-Year Low on Further Weak Inflation

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.