Forex Trading News – Canada CPI for May, shows rise on inflation

Important: This page is part of archived content and may be outdated.

Strong Consumer Price Index from Canada forced the Loonie downwards. The year over year CPI came out at 3.7%, while the poll was for 3.3% and the previous rate was again 3.3%. The month over month CPI came out positive as well at 0.7% defying the forecast of 0.3%. The monthly and yearly Core CPI of the Bank of Canada was released at 0.5% and 1.8 %, beating the polls of 0.2% and 1.5% respectively. Immediately after the news the USDCAD pair lost some 48 pips, within less than 10 minutes to touch a four days low of 0.9721. The CPI is published by the Statistics Canada Bureau and it is a measure of the price movements related to a representative basket of consumer goods. The Core Index is published by the Bank of Canada excludes goods that may inject seasonal correlation, it is considered as the most important Index of domestic inflation and policymakers usually give more attention to its readings. The US Dollar currently is trading marginally above the four days trough at 0.9732, struggling to rebound from the steep fall after the positive economic data for Canada.