The Canadian Dollar soared significantly against its American counterpart after the data showed a stronger-than-anticipated monthly gain in Canada’s consumer price inflation. The USD/CAD currency pair plunged 47 base points, or 0.37%, to touch the intraday low of 1.2655, but right after that it reversed and continued to go back up to the 1.2700 area.
Statistics Canada reported on Friday that the country’s consumer inflation marked a 0.7% monthly increase in January, putting an annual growth rate to 1.7% in the reported period. These gains were mainly supported by rising prices in all eight major components, from which household operations, furnishings and equipment index had the largest increase.
