ForexSpace.com - Latest figures from Canada show inflation rose 0.4 percent month-on-month during March. This forex news comes in slightly below expectations at +0.5 percent, fuelled over the past twelve months by a 1.9 percent climb over the same period, down from 2.6 percent in previous print.

The Canadian dollar gained versus the greenback after consumer prices rose in March, bolstering speculation the Bank of Canada will bring forward its timetable for raising interest rates. The currency was headed for a 0.8 percent gain this week versus its US counterpart. This would register the biggest move in seven weeks, and came after BoC Governor Mark Carney commented that the removal of stimulus may be “appropriate”, given stronger growth and inflation.

Following the news, the loonie/greenback cross was seen closing the trading week sharply lower, helped along by increasing risk-appetite on strong German data, hammering the USD and adding bearish pressure. At the time of writing, live forex news reports show the USD/CAD is down 0.26 percent at 0.9924, facing the next support at 0.9880 (low Ape.19) ahead of 0.9865 (low Apr.17), then 0.9861 (low Mar.19) and 0.9849 (low Mar.2). On the upside, a break above 0.9965 (high Apr.19) would bring 0.9970 (MA10d) then 1.0012 (high Apr.17) and 1.0033 (high Apr.16).

Drew Hillier. Editor

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