Forex News: Canadian Dollar Drops After Weak Inflation Data

Canadian Dollar Drops After Weak Inflation Data

(RTTNews) - The Canadian dollar declined against its most major counterparts in the New York session on Tuesday, following the release of weak inflation data for July.

The CPI rose 0.1% on a seasonally adjusted monthly basis, following an increase of 0.2% in June.

Core CPI eased to 0.1% from 0.2% in June.

The CPI increased 1.7% year-over-year in July, down from a 1.9% rise in June. The reading came in line with forecasts.

Oil prices fell amid indications of de-escalation in the Russia-Ukraine war.

The loonie fell to near a 3-week low of 1.3868 against the greenback and a 4-day low of 106.35 against the yen, from an early high of 1.3796 and a 6-day high of 107.20, respectively. The next possible support for the currency is seen around 1.40 against the greenback and 102.00 against the yen.

The loonie edged down to 1.6174 against the euro, from an early 5-day high of 1.6080. The currency is seen finding support around the 1.62 level.

In contrast, the loonie climbed to near a 2-week high of 0.8941 against the aussie. If the currency rises further, it is likely to find resistance around the 0.86 level.

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