BREAKING: CAD strengthens slightly after CPI data

• Canada’s annual inflation fell slighlty to 6.8% YoY in November from 6.9% in October, above market expectations of 6.6%. 

  Today's report pointed to slowest pace of price growth since March. Consumer costs rose at a slower pace for transportation (8.5% vs 9.5% in October), largely due to a slower rise in gasoline prices (13.7% vs 17.8%) as the reopening of refineries in the western United States drove fuel prices in British Columbia and Alberta to ease. On a monthly basis, Canadian consumer prices rose by 0.1% in November, slowing from a 0.7% gain in the prior month.

• Core consumer prices in Canada remain unchanged at 5.8 % in November.

Source: Forexlive

Mortgage interest costs also moved higher, nevertheless markets perceived today's report as hawkish which makes it more likely the BoC will raise rates net month. Current pricing is near 50/50.

USDCAD fell slighlty after CPI relelase and is approaching 1.3600 support. Source:xStation5