Forecast: Data to show slowdown in Canada CPI growth

NEW YORK (Forex News Now) – Statistics Canada is due on Tuesday to publish key data on the consumer price index, in one of the day’s major realtime forex news events affecting the loonie.

The report is expected to show that the price of goods and services purchased by consumers rose by 0.3% in November, according to two major online FX trading news outlets, down from the growth of 0.4% recorded the previous month.

The office is scheduled to release the report at 12:00 P.M., GMT; as such, the data is likely to have a big impact on currency market trading during the day.

However, the release of the report may be overshadowed by data released simultaneously by Statistics Canada on the change in the value of retail sales in October, which is forecast to have grown by 0.6%, the same as in September.

According to USD/CAD analysis, lower-than-expected growth in the CPI could lift the currency pair toward short-term resistance around yesterday’s high of 1.0208.

But should the CPI grow more than forecast, USD/CAD could push toward short-term support around the low of Dec. 1, 1.0141.