Updated
Updated · TradingView · Sep 14
Canadian Dollar Falls to 1.39 per USD as 3.0% CPI Bolsters Fed Tightening View
Updated
Updated · TradingView · Sep 14

Canadian Dollar Falls to 1.39 per USD as 3.0% CPI Bolsters Fed Tightening View

3 articles · Updated · TradingView · Sep 14

Summary

  • Around C$1.39 per US dollar, the loonie slid to a one-month low in mid-September after Canada’s August inflation report came in tame.
  • Canada’s headline CPI held at 3.0% year on year, while the Bank of Canada’s median and trimmed-mean gauges stayed contained at 2.0% and 1.9%, easing pressure for a more hawkish domestic outlook.
  • Rising Middle East-driven oil and fuel prices would normally support the currency of a major crude exporter, but this surge instead revived inflation worries in the US and lifted the dollar.
  • September 16 Fed rate-hike expectations strengthened that move, leaving the Canadian dollar under pressure despite firmer energy markets.

Insights

Could the Bank of Canada's complex inflation messaging be quietly fueling the loonie's decline against a surging US dollar?
Why did soaring oil prices suddenly fail to protect the Canadian dollar from hitting a one-month low?