PPI report and USD/CAD

Discussion in 'Forex Trading' started by ultracrystal, Oct 18, 2005.

  1. Alright, so I was watching the USD/CAD currency pair and as soon as the PPI report was released, the USD took a huge dump. Fortunately I ended up making money, but I still don't understand why it went down so fast. I thought it would have gone up considering the PPI report. My guess is that the higher inflation was already factored into the price and traders were simply taking their profits off the table. I guess it goes with the saying "buy the rumour and sell the news". Also, I figure the BoC's rate decision compounded the decrease as well. Any thoughts on the subject would be appreciated.