Canadian Inflation Rises to 3.1%; BoE Votes 7-2 to Leave Rates Unchanged

Daily Forex Fundamentals | Written by DailyFX | Jul 23 08 12:00 GMT |

Fundamental Headlines GBPUSD - The BoE voted 7-1-1 to leave interest rates unchanged at their July 10 policy meeting. The minutes from the meeting showed that Tim Besley voted for a quarter point rate hike, while dove David Blanchflower called for a rate cut. The majority voted to leave rates unchanged as they see the inflation rising higher than initially expected, while the housing and growth slowdown is becoming more pronounced, signaling that rates may remain unchanged for the remainder of the year. EURUSD - European industrial new orders dropped 3.5% in May, which was twice the estimate. German orders fell for a sixth month as a strong Euro and made exports less competitive. The region continues to show signs of slowing growth, which may keep the ECB on hold. USDCAD - Inflation in Canada rose to 3.1% in June from 2.2% the month prior, on rising energy costs. The prices accelerated faster than the 2.9% economists had expected and rose above the BoC's target band of 1-3% for the first time since September, 2005. Nevertheless, the slowdown in retail sales to 0.4% and the 5,000 jobs lost in June may keep the MPC on hold for the remainder of the year. Lawmakers Agree on Outline of Big Housing Pact (link) - Wall Street Journal ECB Lowers Growth Outlook (link) - Wall Street Journal Banks Help Cheer FTSE (link) - Financial Times Paulson & Co. Plans Fund to Provide Capital to Financial Firms (link) - Bloomberg Oil, Gold, Crops Drop as Stronger Dollar Cuts Commodity Strength (link) - Bloomberg DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.