Statistics Canada reports that the CPI grew by 0.2% in August. Experts and anticipated a 0.3% increase. Therefore, the index failed to come up to their expectations. The year-over-year rate of inflation declined by 0.1% down to 1.2% in August.
The report suggests that the actual data are below the forecast for Q3 2012. Some analysts believe that Q3 2012 will show the weakest performance since mid 2010.
The analysts working for RBC Economics express concerns over the low rate of inflation. They say the reports will suggests low economic potential this quarter.
Forex.
According to , the Canadian Dollar keeps weakening against the US Dollar. The experts report that USDCAD is forming an upswing represented by wave А/В of level H16.
A further rally will probably encounter resistance around 0.9817 and 0.9858. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 0.9731 (as shown below).
