- The Canadian Dollar shakes against the US Dollar after Tuesday’s CPI.
- Canada reported an increase in CPI inflation in May.
- Additional focus will fall on the July inflation figure ahead of the BoC rate decision in July.
He Canadian dollar rose on Tuesday after Canadian Consumer Price Index (CPI) inflation rose in May. Despite the increase in CPI growth, the CAD traded lower against the US Dollar during the US market session, reaching a new 14-day high before stabilizing on Tuesday.
Canada also saw an increase in the Bank of Canada’s (BoC) core CPI reading in May. With CPI inflation rising following the BoC’s recent rate cut, renewed focus will be placed on the upcoming June CPI figure ahead of the Canadian central bank’s rate decision scheduled for July 24.
Daily Market Summary: Rising Canadian CPI boosts CAD
- Canadian CPI inflation rose to 2.9% annually in May, erasing the forecast drop to 2.6% from 2.7% previously.
- The monthly CPI rose to 0.6% in May, far exceeding the 0.3% forecast and accelerating from 0.5% previously.
- The BoC core CPI also rose to 0.6% m/m versus the forecast to remain at 0.2%.
- A sudden spike in Canadian inflation follows a recent quarter-point cut by the BoC, which could raise concerns that the Canadian central bank started cutting rates too soon.
- The US CB Consumer Confidence Survey fell to 100.4 from 102.0, slightly better than the expected 100.0.
Canadian Dollar PRICE Today
The table below shows the percentage change of the Canadian Dollar (CAD) against major currencies today. Canadian dollar was the strongest currency against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.27% | 0.06% | 0.08% | 0.06% | 0.28% | 0.20% | 0.21% | |
| EUR | -0.27% | -0.22% | -0.21% | -0.22% | 0.00% | -0.04% | -0.05% | |
| GBP | -0.06% | 0.22% | 0.00% | 0.00% | 0.23% | 0.19% | 0.16% | |
| JPY | -0.08% | 0.21% | 0.00% | -0.02% | 0.22% | 0.15% | 0.15% | |
| CAD | -0.06% | 0.22% | -0.01% | 0.02% | 0.21% | 0.18% | 0.16% | |
| AUD | -0.28% | 0.00% | -0.23% | -0.22% | -0.21% | -0.04% | -0.05% | |
| NZD | -0.20% | 0.04% | -0.19% | -0.15% | -0.18% | 0.04% | -0.02% | |
| CHF | -0.21% | 0.05% | -0.16% | -0.15% | -0.16% | 0.05% | 0.02% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent the CAD (base)/USD (quote).
Technical Analysis: Canadian Dollar Gains Some Ground Amid Swing, But Gains Remain Modest
The Canadian Dollar (CAD) briefly rose to a new two-week high against the US Dollar on Tuesday before retreating within the day’s opening range. The CAD also made gains against the Euro and the Australian Dollar, rising about a fifth of a percent against each.
USD/CAD fell to a new 14-day low of 1.3624 before recovering to Tuesday’s opening bids near 1.3660. The pair is caught in a short-term chart turmoil as bidders struggle to break the intraday technical resistance at 1.3680.
Despite a -1.2% top-to-bottom drop from the early June peak at 1.3791, the CAD appears to be running out of gas against the US Dollar with USD/CAD finding a price floor near 1.3650. The daily candles continue to hold in a consolidation pattern north of the 200-day EMA at 1.3582.
USD/CAD Hourly Chart
USD/CAD Daily Chart
economic indicator
Bank of Canada Core Consumer Price Index (MoM)
Statistics Canada It is the entity in charge of publishing the underlying consumer price index. The underlying CPI includes fruits, vegetables, gasoline, oil, natural gas, mortgage interest, urban transportation and tobacco. These eight volatile products are considered key indicators of inflation in Canada. A high reading anticipates a firm stance from the Bank of Canada, and is bullish for the Canadian dollar.
Last post: Tue Jun 25, 2024 12:30
Frequency: Monthly
Current: 0.6%
Dear: 0.2%
Previous: 0.2%
Fountain: Statistics Canada
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
