USD/CAD – Loonie Takes Flight After Inflation Report

  • Canada Jul CPI-Common +1.4% y/y
  • Canada Jul CPI-Median +1.7% y/y
  • Canada Jul CPI-Trim +1.3% y/y
  • Canada Jul Total CPI +1.2% y/y
  • Canada Jul Total CPI Forecast at +1.2%
  • Canada Jul Total CPI +0.0% from Jun
  • Data this morning showed that Canada’s annual inflation rate picked up steam last month after slowing to a near two-year low in June, as it cost more to purchase gasoline and maintain a residence.

    The all-items consumer-price index in July rose +1.2% from a year earlier, following a +1% advance in the previous month. The headline print matched market expectations.

    On a month-over-month basis, CPI was unchanged in July. Meanwhile, the average annual rate of core-inflation rose +1.5% in July vs. June’s gain of +1.4%.

    The loonie has gathered steam outright, rallying +0.4% to C$1.2714 from C$1.2768 immediately after the data release. Major support remains intact just below the psychological C$1.27 handle at C$1.2685.

    This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell