Canada’s inflation rate continued to rise from 2.3% in May to 2.4% in June, as reported today by Statistics Canada.
Is this the continuation of a longer-term trend, or simply temporary? Time will tell.
As I mentioned in my post of June 20th, a break and hold below 1.065 for the USD/CAD Forex pair may cause some concern for the Bank of Canada. That level was hit last week, as shown on the following 10-Year Weekly chart before it bounced and retested a 40% Fibonacci level at 1.08 and declined to its current level 1.0736 as I write this during Friday’s trading session.
This is a chart worth watching, along with my chart posted overnight of GOLD, to watch for a break and hold of one of these resistance or support levels…higher GOLD prices may include a strengthening of the Canadian Dollar against the U.S. Dollar.
