The Canadian dollar gained against the US dollar and Japanese yen, but upcoming event risk could shake the commodity dollar up.
Headline CPI for July is projected to fall to an annual rate of -0.8 percent - the lowest since 1953 - from -0.3 percent, while the Bank of Canada’s core measure is projected to hold steady at 1.9 percent. Such results would suggest that any price declines are due purely to falling commodity costs, and as long as the core measures don’t fall sharply, the Canadian dollar shouldn’t react too strongly. However, if broader price pressures start to fall more steeply, concerns about deflation may arise and weigh on the currency.
[B]Check out the [/B][B]Daily Fundamentals in its entirety[/B][B] for a look at what happened across the majors.
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[B]Related Article:[/B] Canadian Dollar Weekly Trading Forecast