Canada’s annual inflation rate increased to 6.70 % in March from 5.7 % in February and well above market expectations of a 6.1% rise. Core consumer prices in Canada increased to 5.50% in March YoY from 4.8% in previous month, while analysts expected reading of 4.2%.

Today’s higher inflation reading may be another impulse for the BoC to raise interest rates, especially considering that the central bank originally wanted rated in 2022 around 2.0%.

USDCAD initially currency pair fell after the release of today’s inflation data, however buyers manage to quickly regain control and price is heading towards resistance at 1.2540. Source:xStation5