Canada IPPI for December 0.7% versus 1.0% estimate

• Industrial product price index (IPPI) 0.7% vs 1.0% estimate.
• IPPI YoY 16.1% vs 18.1% last month
• Raw material price index MoM -2.9% vs -1.3% estimate
• RMPI YoY 29.0% vs 36.2% last month

Highlights:

• The IPPI is increase for the fourth consecutive month
• Within the IPPI data, lumber and other wood products rose 19.2% in December for the third consecutive month over month gain in the strongest monthly increase ever for softwood lumber (up 32.8%). Weather played a role along with labor shortage which created an imbalance in the woods one demand
• Energy and petroleum products fell -4.9% in December but rose 43.9% versus the same month a year ago
• IN the RMPI, excluding energy products the our MPI rose 0.4% for the month
• Crude energy products felt -8.4% but were up 54% versus 2020. The declines were led by a -8.8% decline in conventional crude oil and 8-10.6% decline in synthetic crude oil
• Prices for gold, silver, and patent one group metal ores and concentrates fell -4.7%

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The USDCAD has seen down and up price action in trading today. The price is currently lower on the day trading at 1.27416 after closing at 1.27677 on Friday. The high today reached 1.2776 in the Asian session and 1.2774 in the early NA session before moving lower.. The low reached 1.27195. The low from Friday reached 1.27123. The 38.2% of the move up from last week's low is at 1.27052. A move below that level is needed to give the sellers some comfort. Absent that, and the buyer are still in the driver's seat.