Canadian retail inflation data for April showed higher than expected figures, boosting the CAD. The consumer price index in April climbed 0.5%, matching the March increase, and below the 0.4% market consensus. The annual rate went from 2.2% to 3.4%. It is the highest level since May 2011.
Regarding the Bank of Canada’s underlying index surprised with a rise of 0.5%, with a 0.1% drop expected. The annual rate went from 1.4% to 2.3%, and the expectation was for a slight decrease to 1.3%.
The loonie appreciated throughout the market following the data. USD / CAD erased the gains for the day and fell to the 1.2055 area, where the lows for the day are. The next highlight on Wednesday’s calendar is the release of the minutes of the last Federal Reserve meeting at 18:00 GMT.
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