Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Will Canadian CPI Shake Up Loonie?

By MarketPulse (Kenny Fisher)ForexOct 20, 2021 07:42AM ET
www.investing.com/analysis/will-canadian-cpi-shake-up-loonie-200605676
Will Canadian CPI Shake Up Loonie?
By MarketPulse (Kenny Fisher)   |  Oct 20, 2021 07:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar has had an uneventful week, but that could change later in the day, as Canada releases CPI data for September.

CPI expected to accelerate

Things are looking rosy for the Canadian dollar. It’s been an outstanding October, with the currency gaining 2.57%.On Tuesday, USD/CAD dropped to 1.2311, its lowest level since July 6. Oil prices have been booming, which has lifted the commodity-based currency, and stronger risk sentiment has also supported the upswing.

Inflation has surged as the economy emerges from the Covid pandemic and manufacturers struggle to keep up with pent-up demand. CPI for September is expected to increase to 4.3% from 4.1% (YoY), which would be the highest level of inflation since 2003. Core CPI is also projected to rise, from 3.5% to 3.6%.

The markets will be keeping a close eye on today’s inflation release. If the data shows that inflation is accelerating, the Bank of Canada could respond by scaling back its bond purchase programme. This would make next week’s policy meeting most interesting, as policy makers may provide details of an exit strategy, ahead of a possible rate hike in 2022.

The US dollar received a lift yesterday, as the 30-year yield rose higher. The dollar index tested support at 93.50, but has clawed higher and is at 93.82 in Europe. If US Treasuries continue to rise, I would expect the dollar to respond with gains.

A Federal Reserve tapering appears imminent, and several Fed officials sounded hawkish about a taper in remarks on Tuesday. The Federal Reserve has insisted that a taper is not linked to an interest rate hike, and even with the surge in inflation, a rate hike does not seem likely before 2023.

USD/CAD Daily Chart
USD/CAD Daily Chart

USD/CAD Technical

  • There are support lines at the round number of 1.2300 and 1.2238
  • There is resistance at 1.2462, followed by 1.2562

Original Post

Will Canadian CPI Shake Up Loonie?
 

Related Articles

Will Canadian CPI Shake Up Loonie?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email