Thanks Fed, Loonie Dollars Continue to Rocket! - Kakiforex.com - Financial Market Media No. 1 in the World Thanks Fed, Loonie Dollars Continue to Rocket! Thanks Fed, Loonie Dollars Continue to Rocket!
InstaForex

July 29, 2021

Thanks Fed, Loonie Dollars Continue to Rocket!

 The Canadian dollar traded strongest on Thursday after gaining support from weak US dollar trading, even after being highlighted by a lackluster reading of Canadian inflation data.


The Canadian consumer price index recorded slower growth in June, rising 0.3% from 0.5% previously recorded, and lower than expected for a 0.4% increase.


On an annual basis, the inflation rate was reported to have risen 3.1% in the past month, but some analysts believe the slowdown may be only temporary.



Meanwhile, the loonie's rise was also supported by the strengthening of higher crude oil prices after seeing US crude oil supply data fall sharply last week.


In addition, the Federal Reserve's statement following the policy meeting earlier this morning that had pushed the greenback's weakness also supported loonie dollar trading to strengthen momentum.


This brought the Canadian dollar to trade 0.3% higher against the greenback, with it trading around the price of 1.2485.


While Canadian government bond yields also recorded higher increases, with 5 -year yields rising at 0.78% and 10 -year yields rising at 1.17%.