Canadian Dollar Mostly Stronger Despite Weak CPI Results

The Canadian dollar ended the day up against the majors, for the most part, despite the fact that inflation in Canada cooled more than anticipated in July.

Indeed, the consumer price index (CPI) for the nation fell 0.3 percent during the month of July, bringing the annual rate of growth down to -0.9 percent, the lowest since 1953. Furthermore, the Bank of Canada’s core measure went unchanged during the month and unexpectedly brought the annual rate of growth down to 1.8 percent from 1.9 percent. The data will only add to concerns that deflation could eventually become a risk for the economy, though still fairly robust core CPI suggests the central bank will not become more aggressively dovish anytime soon.

Check out the Daily Fundamentals in its entirety for a look at what happened across the majors.

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