The Canadian dollar today fell against the US dollar following the release of disappointing CPI data for August in the early American session. The USD/CAD currency pair had dropped to new intra-day lows as the loonie rallied against the US dollar before the CPI release allowed the greenback to recover.
The USD/CAD currency pair today rallied to a high of 1.3271 before falling to a new daily low of 1.3237 then retracing most of its losses to trade higher at the time of writing.
The currency pair has witnessed massive price swings since Monday following the bombing of the largest Saudi Arabian oil-processing facility. The commodity-linked loonie has been buffeted by fluctuations in global crude oil prices as tracked by the West Texas Intermediate as investors react to events in the Middle East. The release of the weak Canadian inflation data for August by Statistics Canada also contributed to the loonie’s weakness. The headline monthly CPI print met consensus estimates of -0.1%, while the annualised print missed expectations by 0.1%. The core CPI prints tracked by the Bank of Canada both missed expectations by a significant margin driving the loonie lower and the pair higher.
The release of the upbeat US housing starts and building permits report for August by the Census Bureau also boosted the US dollar driving the currency pair higher. President Donald Trump’s new sanctions on Iran also favoured the greenback.
The currency pair’s short-term performance is likely to be affected by the FOMC announcement planned for 18:00 GMT.
The USD/CAD currency pair was trading at 1.3271 as at 15:12 GMT having recovered from a low of 1.3237. The CAD/JPY currency pair was trading at 81.52, having dropped from a high of 81.70.
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