Canadian Dollar dropped markedly against the Greenback after data showed slightly weaker-than-anticipated monthly gain in consumer inflation, while the yearly rate moved closer to the Bank of Canada’s 2% target. The USD/CAD currency pair rose 88 base points or 0.70% to the 1.2571 mark and continued consolidation in the 1.2620 area.
Statistics Canada reported on Friday that the country’s consumer inflation marked a 0.2% monthly increase in September, putting an annual growth rate to 1.6% in the reported period. These gains were mainly supported by rising gasoline prices, as well as higher shelter and food costs. The BoC is expected to meet this Wednesday to discuss if further monetary tightening is appropriate at this time.
