Inflation data in Canada

• Core consumer price index (CPI) (m / m) (July),  fact 0.2%,  previous value  0.1%.
• Core consumer price index (CPI) (y / y) (July), fact 1.6%, forecast 1.3%.
• Consumer Price Index (CPI) (m / m) (July), 0.5% fact, forecast 0.1%.
• Foreign securities purchases in Canada  (June), the fact is 11.55B, the forecast is 4.91B.

The report on the consumer price index in Canada for July exceeded market expectations, which is the CPI’s annual growth rate of 1.6%, and meets the maximum value for 17 months. Also, the Canadian currency was supported by an unexpected increase in foreign investment, which can be attributed to the overall increase in risks on the market.

The graph of the consumer price index (CPI) (y / y)

As a result of these news, the pair USD / CAD accelerated the decline, thereby indicating the preservation of the general downtrend, which is traced from June. In this case, the resumption of a downtrend may indicate a more significant decline to the support levels: 1.3050 and 1.2950.

USD/CAD chart. The current price is 1.3080.

Read also: “Carry trade – the earning strategy  on cross-rates”

Andre Green

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Medium-term prospects for the US dollar for August-September
2. Emerging markets and their prospects: Chinese yuan (CNH or CNY)
3. Stock indices: the Japanese market

Current Investment ideas:

1. Preparing to have profits on an optimistic report of Alcoa Inc.!
2. On weak reporting of Boeing shares we can get a strong income!