The Canadian dollar rose against some of its major peers today, including the US dollar and the euro, though not all of them, falling versus the Japanese yen. The currency was relatively firm despite the bigger-than-expected drop of consumer prices.
The Consumer Price Index fell 0.4% in December from the previous month (not adjusted for seasonal variations) after rising 0.3% in November. Economists had counted on a smaller 0.3% decrease. The core components of the index dropped 0.5% following the 0.1% decrease in the previous month.
One of the supporting factors for the loonie was the rally of crude oil prices. Crude got help from the weakness of the US dollar as it made dollar-priced commodities cheaper.
USD/CAD dropped from 1.2376 to 1.2317 as of 18:10 GMT today. EUR/CAD slipped from 1.5338 to 1.5324. Meanwhile, CAD/JPY fell from 88.35 to 88.03, pulling back from the daily high of 88.82.
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