USD/CAD: Canadian CPI and Trade Balance

The US Dollar depreciated against the Canadian Dollar, following the Canadian Trade Balance data release on Wednesday at 12:30 GMT. The USD/CAD exchange currency rate lost 34 pips or 0.25% right after the release. The US Dollar continued trading at the 1.3285 level against the Canadian Dollar.

Statistics Canada released the Canadian Trade Balance data that came out better-than-expected. The index was negative 2.9B compared with forecast negative 3.5B. Note, that the Canadian CPI was released at the same time.

According to analysts, the USD/CAD currency pair has reached the four-week low after the core inflation increased surprisingly. Experts had expected overall inflation to rise due to higher energy prices. However, this upturn might signal that the Canadian economy is tighter than the Bank of Canada had predicted.