Today’s consumer price index (CPI) reports out of Canada gave traders reason to buy into the Canadian dollar (CAD), colloquially known as the Loonie. Both the nominal and the core readings came in well above forecasts in the northern giant’s first publication of highly bullish and impactful news since the June 10th publication of the country’s unemployment rate.
Forex traders took cue from the CPI figures as a sign to go long on the CAD. The nominal reading for the country’s CPI was in at 0.7%, beyond the expected 0.2%. The core reading, which does not take into account 8 of the more volatile goods and services that distort the underlying trend, revealed 0.5% growth, beyond a similar 0.2% expectation.
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