USD/CAD moves higher on Tuesday and trades around 1.3760 at the time of writing, up 0.17% on the day, as the Canadian Dollar (CAD) struggles to fully benefit from higher Oil prices.
West Texas Intermediate (WTI) trades at $102.70, up 0.60% on the day, which would normally support the Canadian currency given the importance of energy exports to the Canadian economy
Data released on Tuesday showed that inflation in Canada accelerated in April. The Consumer Price Index (CPI) rose by 2.8% YoY, compared with 2.4% previously, although it came in slightly below market expectations. On a monthly basis, prices increased by 0.4%.
However, the Bank of Canada (BoC) preferred core measure used to assess underlying inflationary pressures continued to show signs of easing. BoC Core CPI slowed to 2.1% YoY from 2.5%. Together, these figures suggest that inflationary pressures remain relatively sticky but continue to follow a gradual downward trend.