The Greenback rose slightly against the Canadian Dollar on the release showing higher-than-projected growth in the US producer prices. The USD/CAD exchange rate rose 10 base points to continue appreciation to touch daily high in the 1.2770 area.
The Labour Department revealed that the US Producer Price Index increased 0.4% over the month of October, surprising expectations for a weaker gain of 0.1%. The surge was driven by a rise in the cost of services. In addition, data showed steady acceleration in underlying produced prices, which encouraged projections for a gradual inflation growth and kept the Fed on track to make the interest rate hike in December.
