Canadian Inflation

The Pound to Canadian Dollar exchange rate reached August highs after July inflation figures stoked further uncertainty about the outlook for the Bank of Canada (BoC) cash rate and as a softer U.S. Dollar helped lift the Loonie and Sterling in North American trade. 

The Canadian Dollar fell against major counterparts after all bar one of the most important measurements of inflation fell further than was expected by economists for the recent month, though some local economists say there is uncertainty over whether the declines will be enough for the Bank of Canada (BoC).

The Pound to Canadian Dollar exchange rate held near the middle of a probable short-term range in the final session of the week but next Wednesday's Canadian inflation figures could see it breaking down toward either 1.67 up ahead, or climbing in the direction of 1.72 instead.

The Pound to Canadian Dollar exchange rate has attempted to draw a line under its April loss with the help of an underperforming Canadian Dollar and a buoyant market for Sterling, which could keep GBP/CAD supported in the 1.65 to 1.66 area over the coming days.

The Canadian Dollar hit a speed bump on Wednesday, paring earlier gains over the U.S. Dollar and Pound in moves that were reinforced by lower-than-expected inflation numbers for the month of February, leaving the Loonie with a negative bias ahead of the all-important Federal Reserve (Fed) decision for March.

The Canadian Dollar extended gains in a risk-on market Wednesday after March inflation figures surprised on the upside and Statistics Canada revised earlier estimates of the trade deficit in favour of the Loonie, which has got some eyeing the Bank of Canada (BoC) ahead of next week's policy statement.

The Canadian Dollar spiked higher Friday after official data revealed a surprise pick up in inflation during December, only to hand back gains shortly after as it emerged methodology changes were behind the increase, leaving the Loonie subject to the whims of energy prices.

The Canadian Dollar extended losses Wednesday after official data revealed a steep fall in inflation during November, which has given the Bank of Canada (BoC) yet another reason to be patient before raising interest rates again.