The Canadian dollar is lagging behind other risk and commodity-linked currencies in Tuesday trading, as the market further contemplates last Friday’s release of weaker-than-expected inflation and retail sales data .
On a seasonally adjusted monthly basis, consumer prices rose 0.3% in April, after increasing 0.8% in March. Consumer prices rose 3.3% in the 12 months to April, matching the increase recorded in March. On a seasonally adjusted monthly basis, consumer prices rose 0.3% in April.
The market pares its expectations of rate increases from the Bank of Canada in next week’s policy meeting, and sees a slim chance of an increase in July, and less than a 50% likelihood of a September increase, according to Canadian Investment Bank, TD Securities.
Since last Friday, USDCAD rose In addition to local conditions, the Loonie is weighed down by fears over the broader market, and as investors flee to a safer greenback.
over 170 pips and has remained on high levels since. USDCAD is currently trading at 0.9774 at intra-day New York trading.