The Loonie lost ground, falling below 1.32 against the Greenback, after reaching a 10-month high of 1.31 on July 13th. This drop was triggered by the latest CPI figures, which indicated a significant deceleration in Canadian inflation.
Consumer prices increased by 2.8% from the prior year in June, marking the lowest rate in over two years and falling below market expectations of 3%. However, the trimmed-mean core inflation rate, which is closely monitored by the Federal Reserve, stayed significantly higher than market predictions of 3.7%, fueling speculations that the central bank might consider implementing another interest rate increase.
In its latest meeting, the Federal Reserve delivered another 25 basis points increase in its target rate, as anticipated, and reiterated its dedication to restoring price stability. Meanwhile, the slight pullback in oil prices since the middle of July also constrained buying pressure for the loonie.
Consumer prices increased by 2.8% from the prior year in June, marking the lowest rate in over two years and falling below market expectations of 3%. However, the trimmed-mean core inflation rate, which is closely monitored by the Federal Reserve, stayed significantly higher than market predictions of 3.7%, fueling speculations that the central bank might consider implementing another interest rate increase.
In its latest meeting, the Federal Reserve delivered another 25 basis points increase in its target rate, as anticipated, and reiterated its dedication to restoring price stability. Meanwhile, the slight pullback in oil prices since the middle of July also constrained buying pressure for the loonie.