Canada Consumer Prices Fall More than Expected on Gasoline

Canada Consumer Prices Fall More than Expected on Gasoline

The Canadian consumer price index dropped a more than expected 0.3% in January after falling 0.7% in the previous month, pressured by a sharp drop in vehicle and natural gas costs . The annual rate of inflation fell to 1.1% from 1.2% versus expectations of prices holding steady. P&G, Others Say Higher Prices Will Stick – Wall Street Journal

• Anglo American to Cut 19,000 Jobs – Wall Street Journal
• US claims 52,000 hid UBS accounts – Financial Times
• GM’s Saab Unit Files for Reconstruction to Survive – Bloomberg
• BOE Buys 340 Million Pounds of Commercial Paper – Bloomberg

USDCAD – The Canadian consumer price index dropped a more than expected 0.3% in January after falling 0.7% in the previous month, pressured by a sharp drop in vehicle and natural gas costs . The annual rate of inflation fell to 1.1% from 1.2% versus expectations of prices holding steady. Meanwhile, core CPI decline to 1.9% from 2.4% as the effects of declining oil prices start to filter throughout the economy. As commodity prices continue to fall lower, the Bank governor Mark Carney sees the annual inflation to fall below zero in the second and third quarters, which may led the central bank to cut borrowing costs again in order to keep inflation between 1-3% target range. Discuss the topic and your trade ideas in the USD/CAD Forum. Link......