Canadian consumer pricing data comes in lower than expected
Daily Currency Update
The Canadian Consumer Price Index (CPI) month-over-month was released at 0.1% which was lower than expected. The median CPI year-over-year was also lower than expected at 3.8% versus 4%. The yearly trimmed CPI, which excludes the most volatile 40% of items, was also slightly lower than expected at 3.7%. This lower CPI data across the board is stemming from lower prices for some travel-related services as well as durable goods and groceries. This dip in CPI is positive for the average Canadian consumer but caused a decrease in CAD/USD and CAD/EUR rates.Key Movers
The US dollar index (DXY) increased this morning, reaching the 106.42 region. Month-over-month retail sales data was released at 0.7%, much stronger than the expected value causing the USD to jump. Core retail sales data month-over-month, which does not include auto sales, was at 0.6%. This was also higher than expected, causing a further positive lift for the USD. Month-over-month industrial production was 0.3% versus the expected 0% change. All three positive data releases drove the DXY to the current level.The Israel-Hamas conflict has caused Israeli New Shekel, or ILS, to spiral to an 8-year low. This severe dip rises amid fears of further economic effects as a result of continued conflict.
The Zentrum für Europäische Wirtschaftsforschung (ZEW) Indicator of Economic Sentiment, a survey of about 300 German institutional investors and analysts for Germany, recorded an increase. This is good news for the EUR and the EUR/USD pair rate was up.
Average earnings including bonuses were released from the UK at 8.1%. This is lower than expected, which seemingly contributed to the GBP/USD rate decrease as the USD rose.
Expected Ranges
- EUR/CAD: 1.4349 - 1.4451 ▲
- GBP/CAD: 1.6572 - 1.6636 ▼
- AUD/CAD: 0.8613 - 0.8687 ▲
- USD/CAD: 1.3602 - 1.3703 ▲