Canadian Dollar Slumps as Inflation Decelerates

The Canadian dollar slumped today, touching the lowest level since March against its US peer, as inflation slowed last month, decreasing probability of an interest rate hike from the Bank of Canada. The Consumer Price Index rose 0.4 percent in April from a year ago. It was the slowest growth since October 2009. Consumer prices fell 0.2 percent, month-on-month.
The BoC was talking about raising interest rates for some time, unique among central banks of developed nations in this regard. Recent fundamental data did not warrant tighter monetary policy and such talks hushed. USD/CAD surged from 1.0192 to close at 1.0290 today, while its daily high of 1.0311 was strongest since March 8. EUR/CAD advanced from 1.3129 to 1.3199. CAD/JPY went down from 100.25 to 99.35 before rebounding and closing at 100.34. If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.