Canadian dollar surges following Canadian CPI report

The Canadian dollar rose on Tuesday due to better-than-expected Canadian Consumer Price Index (CPI) inflation, which beat expectations and gave the Canadian Dollar a slight boost.

The rest of the week sees a steady trickle of Canadian data heading into the holiday shutdown, including the Bank of Canada’s latest Summary of Opinions, Canadian Retail Sales for October, and the final Canadian Gross Domestic Product (GDP) print for 2023.

The Canadian Dollar is up four-tenths of one percent against the US Dollar on Tuesday, and up over a full percent against the Japanese Yen. Canada’s dollar also loses ground against the Antipodeans, down nearly half a percent against both the Australian Dollar (AUD) and the New Zealand Dollar (NZD).

The USD/CAD pair is down over 4% from November’s early peak, and the pair is extending beyond the 200-day Simple Moving Average (SMA) near the 1.3500 handle after breaking through the key moving average last week.

The US Dollar has resumed backslide against its Canadian counterpart, and Tuesday will mark the fourth red candle out of the last five consecutive trading days.