Canadian Dollar Firm After Inflation Data

The Canadian dollar today rose after the release of inflation data, even though some parts of the report were not that good. The loonie even managed to rebound versus the US dollar despite starting the trading session with a decline.

Canada’s Consumer Price Index rose 0.2% in October from September, accelerating from the previous month’s growth of 0.1% and matching analysts’ expectations. The core CPI also rose 0.2% (not seasonally adjusted), with the same pace as in September. Experts had hoped for faster growth by 0.3%.

Usually, the Canadian currency moves in tandem with oil price. Yet today the loonie was rising, while crude logged a decline.

This weekend, representatives from Mexico and Canada will meet to discuss what Donald Trump’s presidency can mean for the NAFTA trade pact. The outcome of the talks may impact the Canadian dollar at the start of the next trading week.

USD/CAD fell from 1.3522 to 1.3498 as of 18:56 GMT today after rising to the high of 1.3563 intraday. EUR/CAD dropped from 1.4367 to 1.4305. CAD/CHF rallied from 0.7446 to 0.7481.

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