Canada: Annual CPI rises 3.3% in July vs. 3% expected

Annual inflation in Canada rebounded to 3.3% in July from 2.8% in June.
USD/CAD slides to 1.3470 after the CPI data and US Retail Sales.

Matías Salord FXStreet

Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), rebounded to 3.3% on a yearly basis in July from 2.8% in June, which was the lowest rate since March 2021. This reading came in above the market expectation of 2.8%. On a monthly basis, the CPI rose 0.6%, compared to analysts' estimate for an increase of 0.3%.

Moreover, the Bank of Canada reported that the monthly Core CPI, which excludes volatile food and energy prices, rose 0.5%, while the annual Core CPI rate stayed at 3.2%, against expectations of a decline to 2.8%.

Market reaction

The USD/CAD edged lower following the Canadian CPI and also US Retail Sales data. The pair dropped from 1.3490 to 1.3470, as the positive impact on the Canadian Dollar was being offset by a larger-than-expected increase in US Retail Sales.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD edges higher to near 1.3650; UK Retail Sales data looms

The GBP/USD pair gathers strength near 1.3645 during the early Asian trading hours. The US Dollar softens against the British Pound amid fading Federal Reserve rate hike expectations. Traders brace for the UK Retail Sales data for July, which will be published later on Friday.

EUR/USD sits near multi-month top bulls await move beyond 1.1700 ahead of PMIs

The EUR/USD pair attracts some dip-buyers during the Asian session, and climbs back closer to its highest level since May 14, with bulls now awaiting a move beyond the 1.1700 mark before placing fresh bets. Nevertheless, spot prices remain on track to register strong weekly gains and prolong the month-to-date uptrend amid a broadly weaker US Dollar.

Gold advances to fresh high since June amid renewed USD selling, fading Fed hike bets

Gold hits a fresh high since early June, around the $4,544 region, during the Asian session on Friday and looks to build on the momentum above a technically significant 200-day Simple Moving Average.

Bulls in control with Bitcoin heading toward $80,000, Ethereum $2,500, XRP $1.50

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are extending their rallies as bullish momentum strengthens and continue to cheer the US Treasury’s decision to double its debt buyback operations. BTC has climbed nearly 20%, ETH over 25% and XRP nearly 30% so far this week.

$40 trillion debt black hole: Is a financial crisis coming?

The United States is closing in on a milestone that would have been almost unimaginable not long ago: $40 trillion in national debt. That staggering figure framed the latest episode of the Money Metals Midweek Memo, as host Mike Maharrey examined what he calls the economy’s “debt black hole” and zeroed in on a relatively obscure corner of the financial system that could become a much bigger problem: the $1.4 trillion private credit market.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.