CAD Falls with Canadian Inflation

The Canadian dollar fell against its US peer today as Canada experienced deflation last month. The currency was little changed against the Japanese yen and gained on the very soft euro.

Canada’s Consumer Price Index dropped 0.2 percent in September from the preceding month while experts had promised a smaller drop by 0.1 percent. The core components of the index actually rose, but the increase trailed analysts’ expectations.

Unlike yesterday, the Canadian currency did not receive support from crude oil as prices for the commodity were falling during the current trading session. Yet the currency showed a surprising resilience against some of its rivals. The probable reason for this was the good news from China. Of course, gains against the euro could be also explained by the weakness of the eurozone currency following yesterday’s remarks from the European central bank’s head.

USD/CAD rose from 1.3089 to 1.3149 as of 15:10 GMT today. EUR/CAD slipped from 1.4536 to 1.4493. CAD/JPY traded close to its opening level of 91.16.

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