Canadian Dollar Falls On Weak Consumer Price Inflation

The Canadian dollar declined against its major counterparts in the European session on Wednesday, following a data showing a decline in the nation’s consumer prices in September.

Data from Statistics Canada showed that the CPI edged down 0.1 percent on a seasonally adjusted monthly basis in September, unchanged from August. Economists has forecast a 0.3 percent drop.

Core inflation, excluding food and energy, ticked up 0.1 percent after a 0.2 percent increase in the previous month.

The CPI rose 1.9 percent year-on-year in September, the same rate as in August.

Excluding gasoline, the CPI rose 2.4 percent for the third consecutive month.

The loonie slipped to 1.3231 against the greenback, after reaching a 2-day high of 1.3195 at 5:15 pm ET. The currency is likely to find support around the 1.30 mark, if it weakens further.

The loonie weakened to a 5-day low of 1.4620 against the euro from Tuesday’s closing value of 1.4562. The loonie is seen finding support around the 1.50 level.

Having risen to a session’s peak of 82.50 against the yen at 5:00 pm ET, the loonie changed course and depreciated to 82.04. The next likely support for the loonie lies around the 78.5 level.

The loonie eased off to 0.8906 versus the aussie, from a 2-week high of 0.8881 seen at 8:00 am ET. Should the loonie drops further, 0.90 is possibly seen as its next support level.

The material has been provided by InstaForex Company – www.instaforex.com