Posted May 17, 14:25

Loonie is Day's Biggest Loser after Inflation Plunge

BoC CPI Core (APR) (m/m)	0.1%
CPI (APR) (m/m)	-0.2%
BoC CPI Core (APR) (y/y)	1.1%
CPI (APR) (y/y)	0.4%
CPI - Core (APR) (m/m)	0.0%

May 17:

CAD is the day's worst performing currency after Canada's April inflation fell to 0.4% y/y from a 1.0% rise in March, posting the biggest decline since October 2009. Core CPI also fell, reaching 1.1% from 1.4% in March. The Canada inflation news bears tremendous significance for the Bank of Canada, which is the least dovish of G5 central banks. Banking on further CAD declines has been one of the primary themes in our Premium Insights, as we warned in Thursday's USDCAD trades about the CPI catalyst. Both of our USDCAD longs have hit their final targets of 1.0295 and 1.0260, with entries averaged at 1.0150. AUDUSD shorts and EURAUD longs hit their final target, while EURUSD awaits the final target at 1.2810 after an average entry at 1.2950. CADJPY and 1 of 2 GBPUSD were stopped out. All the Premium trades and their rationale are in the Latest Premium Insights.

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US Dollar Ends Another 9-Yr Down Cycle

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PREVIOUS NEWS

USD Dusts Itself off After Decline, Onto Abenomics 2.0 May 16, 2013 23:37:

A flurry of weak economic data put the US dollar on its heels but it stormed back later on a hint about QE tapering. The pound was the top performer on the day while the kiwi languished. Watch out for new Japanese government stimulus measures later tonight. Both of today's new USDCAD longs were triggered, awaiting tomorrow's Canada CPI figures. Both CADJPY are in progress and so is the USDJPY as these may be impacted by tonight's announcement from Tokyo. Rest of trades are in the latest Premium Insights.