Canada: CPI in line with expectations, USDCAD ticks lower 🔎

The year-over-year CPI inflation in Canada for December was 3.4% (in line with expectations), compared to 3.1% in November.

On a monthly basis, there was a decrease of -0.3% (as expected), compared to a 0.1% increase previously.
The core measure according to the Bank of Canada was 2.6%, compared to 2.8% previously (-0.5% month-over-month compared to a 0.1% in the previous reading).

Today, USDCAD gained 0.3% and managed to erase a significant part of the losses after the publication. Simultaneously with the inflation data, a regional economic activity index from the New York area was released, which led to a weakening of the dollar. The USDCAD pair has been limiting its initial gains from the first part of the day.

source: xStation 5

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