Canada CPI & Core CPI Data
Canada will release CPI as well as core CPI data around 1230 GMT/0600 IST. Markets expect CPI m/m around 0.4 pct vs 0.3 pct previous release. Important to note here that since last 3 – months Canada released CPI data with negative numbers only. In addition Canadian dollar is also strengthening ahead of CPI, core CPI data. Canada is going to release almost 6 related economic data at a same time so there are chances of mixed data and volatility in Canadian dollar too.
Let’s see how CAD has reacted during the past data release:
June 17: Negative CPI data at 0.3 pct vs 0.8 pct expected (previous -0.7)
May 20: Negative CPI data at -0.7 pct vs -0.6 pct expected (previous -0.6)
April 22: Negative CPI data at -0.6 pct vs -0.4 pct expected (previous 0.4)
USD/CAD: Canadian dollar strengthen against U.S. dollar ahead of CPI and core CPI data. Yesterday pair hit fresh 6 – week low at 1.3424 mark. Pair made intraday high at 1.3483 and low at 1.3430 mark. A sustained close below 1.3458 will drag the parity down towards key supports around 1.3418, 1.3390 and 1.3321 marks respectively. Alternatively, reversal from here will take the parity towards key resistances around 1.3536, 1.3589, 1.3612 and 1.3642 marks respectively.
Take a look and do trade wisely!