• Annual CPI inflation in Canada declined to 7.6% in July as expected.
• USD/CAD continues to fluctuate at around 1.2900 after the data. 

Inflation in Canada, as measured by the Consumer Price Index (CPI), declined to 7.6% on a yearly basis in July from 8.1% in June, the data published by Statistics Canada revealed on Tuesday. This print came in line with the market expectation. 

The Bank of Canada's (BOC) Core CPI, which excludes volatile food and energy prices, edged lower to 6.1% from 6.2% in the same period, compared to analysts' estimate of 6.7%.

Market reaction

With the initial market reaction, the USD/CAD pair edged slightly lower before staging a rebound. As of writing, the pair was trading flat on the day at 1.2900.