WSJ:Canadian Dollar Ticks Higher After Hotter-Than-Forecast CPI
By Karen Johnson
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--The Canadian dollar gained modestly early Wednesday as domestic consumer price index showed hotter-than-expected price gains in August, stirring thoughts that the Bank of Canada's next policy increase might not be as far off as currently forecast.
However, moves were subdued as investors contemplated the global growth picture, and continued to await an announcement from the Fed's policy-setting body, the FOMC, due later Wednesday.
The U.S. dollar was at C$0.9946 Wednesday morning, from C$0.9955 just before the data, and C$0.9926 late Tuesday, according to data provider CQG.
"There's always a risk in placing too much emphasis on one data point--particularly given that core inflation has been quite volatile lately," cautioned Emanuella Enenajor, economist at CIBC World Markets in Toronto.
--By Karen Johnson, Dow Jones Newswires; 416-306-2022; karen.johnson@dowjones.com
