# Canadian dollar rallies after hotter-than-expected inflation data

> The Canadian dollar strengthened on August 18, 2021, after annual inflation rose to 3.7% in July, above the 3.4% expected. U.S. crude oil rose 0.8% to $67.11 a barrel after four days of declines.

- Date: 2021-08-18 · published 2021-08-18T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/45794-canadian-dollar-rallies-after-hotter-than-expected-inflation-data
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Hotter inflation raises expectations of tighter Canadian monetary policy, which supports the loonie. Higher crude supports Canadian commodity export earnings.

## Read by commodity

- WTI: bullish ▲
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-04-12 | [Oil rises 2% on lower-than-expected US inflation data \| Reuters](https://feedsoft.ai/events/36559-oil-rises-2-on-lower-than-expected-us-inflation-data-reuters.md) | -0.8% | -9.6% |
| WTI | 2023-09-18 | [Canadian dollar hits 1-month high ahead of inflation data](https://feedsoft.ai/events/34337-canadian-dollar-hits-1-month-high-ahead-of-inflation-data.md) | -0.9% | -3.5% |
| WTI | 2021-12-16 | [Canadian dollar rallies as more central banks move on inflation - The Globe and Mail](https://feedsoft.ai/events/43854-canadian-dollar-rallies-as-more-central-banks-move-on-inflation-the-globe-and.md) | +2.7% | +15.7% |
| WTI | 2021-01-29 | [Canadian dollar rallies as economy grows faster than anticipated \| Financial Post](https://feedsoft.ai/events/49367-canadian-dollar-rallies-as-economy-grows-faster-than-anticipated-financial-post.md) | +7.5% | +17.7% |
| WTI | 2021-05-12 | [Canadian dollar notches 6-year high as U.S. inflation jumps](https://feedsoft.ai/events/47331-canadian-dollar-notches-6-year-high-as-u-s-inflation-jumps.md) | +0.3% | +7.1% |

## Sources

- reuters.com: https://www.reuters.com/article/us-canada-forex-idCAKBN2FJ1AY/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.