Canadian Raw Material Prices Surge
CAD RMPI Actual 12.1%, Expected 1.9%, Previous 1.7%
CAD IPPI Actual 0.3%, Expected 0.3%, Previous 0.4%
Release Explanation: The Raw material Price Index (RMPI) measures the change in the price of raw materials purchased by manufacturers. “It's a leading indicator of consumer inflation; when manufacturers pay more for goods the higher cost is usually passed on to the consumer. The Industrial Product Price Index reflects the prices that producers in Canada receive as the goods leave the plant gate (wholesale prices)”, TheLFB-Forex.com Trade Team members said.
Trade Desk Thoughts: According to Statistics Canada, the Industrial Product Price Index (IPPI) rose 0.3% last month compared with February, due to both the depreciation of the Canadian dollar against the US dollar and increases in the prices for primary metals. The Raw Materials Price Index (RMPI) advanced 12.1 % compared with February, pushed up by a strong increase crude oil prices.
Forex Technical Reaction: Since the release of the 08:30 EDT reports the Canadian dollar has weakened slightly against the dollar, but remains stronger overall since the start of the trading day.