Canada’s producer price index kept on going down in March, which is confirmed by the official stats released by Statistics Canada, the country’s major statistical agency. It is interesting to note that the purchasing prices on raw materials increased over he same reporting period.
To be more specific, the PPI came in at -0.6% in March as opposed to February’s figures. On top of that, this is not the first time the PPI is going down. The thing is that February’s PPI came in at -1.0% relative to the previous reporting period, which is January 2016. As opposed to March 2015, the index dropped by 2.1% in March 2016.
It is interesting to note that the PPI is monitored and recorded for 21 groups of goods, Market Leader reports. March was a weak month for 18 of them. The biggest loser happens to be the sector of leisure activity vehicles (LAV). The sector lost 2,9% over the reporting period. At the same time, energy prices (including oil) are growing, which let the sector gain 5,2% in March 2016, thereby partially making up for the overall PPI decline.
Forex
In the meantime, the Canadian Dollar keeps on rallying within the scope of the same long-term rally against the U.S. Dollar, Masterforex-V Academy reports. This means that USDCAD is going down. To be more specific, USDCAD is going down within the scope of wave 3/C of level Weekly. There is a minor wave – wave 3/C inside the mentioned move.
The closest major levels of support are such Fibo levels as 1.2448/24, 1.2173/56. Alternatively, a break above the top of the descending MF sloping channel and MF pivot 1.2988 is going to complete the existing tendency.
