The Greenback weakened against the Canadian Dollar, following the Canadian Consumer Price Index release on Friday at 12:30 GMT. The USD/CAD currency pair lost 76 pips, or 0.58%. The data release had a significant impact on the currency pair after which the candles continue decreasing to the 1.3010 area.
The Statistics Canada released Canadian Consumer Price Index data that came out better-than-expected at 0.5% to the forecast of 0.1%. The actual data gives a good sign for the Canadian currency. Consumer prices account for a majority of overall inflation which means that rising prices lead the central bank to raise interest rates.
Janis Macukans, the senior analyst at Dukascopy Bank SA comments: "The range of the USD/CAD currency pair fluctuations was expected. An increase of volatility of at least 70 base points (pips) has been observed for the last half a year now for this currency pair."
| Historical Data Table: CPI m/m | Economic Calendar for 20.08.2018 | ||||||||
| Date | 23.03.2018 | 20.04.2018 | 18.05.2018 | 20.07.2018 | 17.08.2018 | 12:15 PM | CA Gov Council Member | ||
| Actual | 0.60% | 0.30% | 0.30% | 0.10% | 0.50% | 2:30 PM | AU CB Leading Index m/m | ||
| Forecast | 0.40% | 0.40% | 0.30% | 0.10% | 0.10% | 10:00 PM | AU RBA Gov Lowe Speaks | ||
| Initial Reaction on Main Pairs | SWFX Sentiment Indexes | ||||||||
| Open Price | Close Price | % Change | Longs | Shorts | |||||
| AUD/CAD | 0.9553 | 0.95199 | -0.35% | AUD/CAD | 70.87% | 29.13% | |||
| CAD/CHF | 0.7572 | 0.76018 | 0.39% | CAD/CHF | 49.82% | 50.18% | |||
| EUR/CAD | 1.49642 | 1.49054 | -0.39% | EUR/CAD | 64.71% | 35.29% | |||
| USD/CAD | 1.3141 | 1.30872 | -0.41% | USD/CAD | 52.28% | 47.72% | |||