The Canadian dollar posted a big jump against most of its major counterparts today as the nation’s inflation accelerated much more than was forecast and commodities, including crude oil, advanced.
The Canadian Consumer Price Index grew 0.7 percent in May from April, compared to the median forecast of 0.2 percent growth. The April increase was 0.3 percent. As for negative fundamentals, the report on Canada’s gross domestic product is expected to show tomorrow a drop by 0.1 percent in April.
August futures for crude oil delivery jumped as much as 3.2 percent to $95.84 per barrel in New York, the highest price since June 15, before trading at $95.10, posting the 2.4 percent gain. The positive fundamentals made investors to increase their bets on an interest rates hike by Canada’s central bank. The Canadian dollar trimmed its monthly decline to only 0.1 percent.
USD/CAD sank from 0.9810 to 0.9673 today as of 22:59 GMT, erasing gains of the previous week. EUR/CAD dropped from 1.4099 to 1.3945 before trading at 1.4005. CAD/JPY climbed from 82.63 to 83.37.
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