Canadian CPI slows in February
Posted on: March 24, 2017
Yesterday the theme was anticipation, as the market sat around on pins and needles and waited for Congress to vote on the Trumpcare bill to see if it had enough support to pass. And, like most trips to the doctor, we waited and waited and waited before Republican leaders decided to delay the vote to try and ensure its passage. We will see if President Trump can whip up the votes today or if they will delay the vote until next week. If the bill is rejected, expect JPY to continue to gain ground against the USD and equities to sell off but if the bill passes expect the sell-off to reverse.
This morning the key data point was Canadian CPI, which printed 2% compared to expectations of 2.1% and caused CAD to sell off a bit against the USD. Overall not a big miss, as 2% is the Bank of Canada’s target. The number was driven once again by the energy sector while being dampened by food prices. We also had a Durable Goods number from south of the border, which was strong on the surface however most of the gains came in the volatile transportation segments. For those watching USDCAD, we continue to chop around in the 1.3200/1.3400 range. Initial support sits around 1.3320 with 1.3260/70 behind it. On the topside, a close above 1.3410 would be very supportive for the pair to regain momentum to the topside.
- Yesterday’s NA Range 1.3320 – 1.3357
- Asia Overnight Range 1.3347– 1.3378
- London Overnight Range 1.3349 – 1.3385