Canadian Dollar rebounds notably after stronger than expected inflation data. CPI rose 0.5% mom in July versus expectation of 0.2% mom. Annually, CPI was unchanged at 2.0% yoy, above expectation of 1.7% yoy. CPI core-common rose to 1.9% yoy, up from 1.8% yoy and beat expectation of 1.8% yoy. CPI core-median slowed to 2.1% yoy, down from 2.2% yoy, matched expectations. CPI core-trim was unchanged at 2.1% yoy, above expectation of 2.0% yoy.
USD/CAD dips notably after the release. But it’s, after all, staying in consolidation from 1.3345. And, as long as 1.317 minor support holds, further rally through 1.3345 resistance is expected at a later stage.
