Loonie Gains on CPI & Trade Balance, Struggles to Keep Gains

The Canadian dollar gained on Wednesday thanks to positive domestic macroeconomic data. At the start of Thursday’s trading session the currency was losing its gains.
Canada’s Consumer Price Index rose 0.3% in March from the previous months, seasonally adjusted. Without seasonal adjustments, the index rose 0.7% — the same as in February and in line with expectations. Year-on-year, the seasonally adjusted CPI rose 1.9%, accelerating from February’s 1.5%. The median CPI rose 2.0% and the trimmed CPI rose 2.1% in March, year-on-year. Both indices accelerated by 0.1 percentage point compared to February and both exceeded the average predicted rate of growth — 1.8%.
Canada’s trade balance deficit narrowed from C$3.1 billion in January to C$2.9 billion in February. That is instead of an increase to C$3.5 billion predicted by specialists.
USD/CAD dropped from 1.3349 to 1.3274 on Wednesday but bounced to settle at 1.3340 and rose to 1.3352 by 00:42 GMT on Thursday. EUR/CAD gained from 1.5068 to 1.5080 today. CAD/JPY rallied from 83.90 to 84.35 during the Wednesday’s trading session but retreated to settle at 83.95 and declined to 83.85 today.

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