Terrible Economic Numbers From Canada Send USD/CAD to A Month High - Forex News by FX Leaders
Inflation used to be at 3% a few months ago in Canada

Terrible Economic Numbers From Canada Send USD/CAD to A Month High

Posted Friday, October 19, 2018 by
Skerdian Meta • 1 min read

Today, it has been pretty quiet regarding the economic data during the European session. But, important economic data releases came from Canada in the US session and they were a major disappointment. Let’s list the retail sales and inflation numbers below.

ActualExpected Previous
Retail Sales-0.1%0.3%0.2%
Core Retail Sales-0.4%0.1%0.9%
Monthly CPI-0.4%0.1%0.1%
Yearly CPI2.2%2.7%2.8%
Core Common CPI1.9%2.0%2.0%
Core Median CPI2.0%2.1%2.1%
Core Trim CPI2.1%2.2%2.1%

As you can see, all numbers are negative. They are lower than expectations and lower than last month as well. Retail sales turned negative while core retail sales, which are more important, declined by 0.4%.

Inflation declined by 0.4% as well on a monthly basis. The annualized inflation number slipped to 2.2%, against 2.7% expected and down from 2.8% last month. Core common, core median and core trim CPI all ticked lower as well.

So, it a terrible round of economic data from Canada all over. The Canadian Dollar has lost around 90 pips and USD/CAD jumped from 1.3030 to 1.3120 s a result, reaching a 5-week high on the charts. I expect the CAD to remain bearish in the US session and perhaps into next week as well.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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