19 Dec 2014
USD/CAD declines from post-inflation report highs
FXStreet (London) - USD/CAD has trimmed some gains after the Canadian dollar challenged five-year lows after the inflation report showed that Canada’s consumer price index rose 2 percent year-on-year in November, down from 2.4 percent in October, falling further than the expectation of 2.2 percent.
Retail sales came in close to flat in October at CAD42.8bn, outperforming on expectations of a 0.3 percent decrease.
The drop in deflation was driven by declines in fuel prices, and brought inflation into line with the Bank of Canada’s inflation target rate. BoC governor Stephen Poloz has forecasted that Canadian inflation will slow in 1.4 percent year-on-year in the second quarter of 2015 after a period of above-target inflation in 2014.
USD/CAD is currently trading at CAD1.1605 declining from near five-year highs at CAD1.1243 immediately following the inflation report.
Retail sales came in close to flat in October at CAD42.8bn, outperforming on expectations of a 0.3 percent decrease.
The drop in deflation was driven by declines in fuel prices, and brought inflation into line with the Bank of Canada’s inflation target rate. BoC governor Stephen Poloz has forecasted that Canadian inflation will slow in 1.4 percent year-on-year in the second quarter of 2015 after a period of above-target inflation in 2014.
USD/CAD is currently trading at CAD1.1605 declining from near five-year highs at CAD1.1243 immediately following the inflation report.