Canada’s Inflation Data
Canada will release CPI, core CPI as well as wholesale sales data around 1230 GMT/0600 IST. This data is derived via the average price of various goods and services sampled and then compared to the previous sampling. Here actual data must be greater than forecasted then only it is good for Canadian dollar (CAD). Market has anticipated CPI to come around 0.4 pct vs 0.8 pct previous release.
Let’s see how CAD has reacted during the previous data release:
USD/CAD: Canadian dollar strengthens noticeably against U.S. dollar and hits highest level since Jan 2020 mark. The pair made intraday high at 1.3175 and low at 1.3138 mark. A sustained close below 1.3166 will drag the parity down towards key supports around 1.3117, 1.3060, 1.3002 and 1.2964 mark respectively. Alternatively, reversal from key support will drag the parity up towards 1.3211, 1.3263, 1.3301, 1.3377 and 1.3421 mark respectively.
Take a look and do trade wisely!