The Canadian year on year and month on month CPI’s for February came out below expectation at 2.2% and 0.3% respectively. The CPI is a measure generated by the comparison of the retail prices of a number of pre-selected goods and services. Both MoM and YoY figures came out by 0.1% below their expected value.
Generally a lower than expected figure in Canada’s CPI tends to have a bearish affect for the Canadian currency, a reflection that was seen following the announcement as the USDCAD pair rose by some 17 pips from 0.9817 to rise to a level of 0.9835, indicating a weakening in the CAD. The Canadian Dollar has now recouped its losses incurred and has in the last 15 minutes gained against the Dollar to bring the USDCAD back down to levels seen prior to the CPI announcement around 0.9816.