Forex Today: Canadian Inflation Undershoots

 Following accelerating British inflation data at a new 41 year high, Canadian CPI comes in slightly lower than expected.

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    1. Canadian CPI (inflation) data came in yesterday at a month on month increase of 0.7%, when 0.8% had been expected. This will be a little encouraging for north America after US inflation lessened earlier this month. Earlier, British inflation accelerated to a new 41-year high level, meeting the most pessimistic forecasts. The news very slightly strengthened the USD/CAD currency pair, but by nothing unusual.
    2. Comments by FOMC members suggest that the Fed is still on track to raise rates to 5% in 2023, as had been expected before the positive US inflation data.
    3. In the Forex market, the Euro is showing the greatest medium-term strength. Weakness is harder to determine, as markets are not moving by much right now.
    4. US retail sales data came in stronger than expected, showing a monthly increase of 1.3% when only 1.0% was expected.
    5. It has now been confirmed that the Republicans have won control of the US House of Representatives by a narrow majority. This is typically positive for stock markets when it happens in midterm elections.
    6. Australian unemployment data came in better than expected, with the unemployment rate falling from 3.5% to 3.4%.
    7. Daily new global coronavirus cases dropped last week, continuing a downwards trend which began last July.
    8. It is estimated that 68.2% of the world’s population has received at least one dose of a coronavirus vaccination.  
    9. Total confirmed new coronavirus cases worldwide stand at over 641.5 million with an average case fatality rate of 1.03%.  
    10. The rate of new coronavirus infections appears to now be significantly increasing only in Tuvalu and China.  

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