Canada’s annual inflation rate increased to 6.70 % in March from 5.7 % in February and well above market expectations of a 6.1% rise. Core consumer prices in Canada increased to 5.50% in March YoY from 4.8% in previous month, while analysts expected reading of 4.2%.
Today's higher inflation reading may be another impulse for the BoC to raise interest rates, especially considering that the central bank originally wanted rated in 2022 around 2.0%.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
USDCAD initially currency pair fell after the relelase of today's inflation data, however buyers manage to quickly regain control and price is heading towards resistance at 1.2540. Source:xStation5
