Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
What’s New About Canadian CPI?
What will happen?
Statistics Canada will release Consumer Price Index (CPI) on Wednesday, April 20 at 15:30 MT time. It’s a monthly release, usually published on the third Wednesday of the next month. CPI is the most important inflation-related release due to its earliness and wide coverage. Moreover, it’s one of the few numbers in the calendar that excludes seasonality.
How will it move CAD?
Canada is struggling with inflation, just like other leading countries. Now the inflation is at 5.7%, and the economists suppose it’s not the peak yet. Due to the Russian-Ukrainian conflict, Canada is experiencing obstacles with the supply of goods and commodities. As a result, in February of 2022, the consumers paid higher gasoline and groceries prices than the same month a year earlier. Housing costs continue to rise, increasing at the fastest annual rate since August 1983.
The previous month’s result was slightly higher than expected, 1.0% vs. 0.9%. Due to the high forecasts, the CAD has been steadily growing since March 8. The sustainable growth of the currency means it is not affected much by releases.
How to trade on CAD CPI release?
Even if the previous results might not move the CAD crucially, anything could happen.
- If the CPI is high, the CAD will rise.
- If the CPI is depressive, the CAD will fall.
Check the Economic Calendar
Instruments to trade: USDCAD, EURCAD, CADJPY
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