CAD Shoots to Upside on Back of Positive Data

The Canadian dollar surged today with a help of positive macroeconomic data, including the Consumer Price Index that was higher than forecasts and above the central bank’s target. The currency jumped to the highest level since January.
Canada’s CPI rose 0.5 percent in May from the previous month (not seasonally adjusted), while analysts predicted 0.2 percent growth. Year-on-year, the index was up 2.3 percent, exceeding the Bank of Canada target of 2.0 percent. Retail sales grew 1.1 percent in April, and the increase was far above the predicted rate of 0.4 percent.
The Canadian currency also profited from high prices for crude oil. While rising energy costs may hurt many economies, they are actually beneficial to the oil-exporting economy of Canada.
USD/CAD went down from 1.0817 to 1.0753, and EUR/CAD declined from 1.4719 to 1.4617 as of 19:04 GMT today. CAD/JPY edged higher from 94.21 to 94.95.

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