Canadian dollar falls slightly, CPI data crimps rate-cut bets

Canadian dollar falls slightly, CPI data crimps rate-cut bets

Source: EODHD - https://www.investing.com/news/economy-news/canadian-dollar-falls-slightly-cpi-data-crimps-ratecut-bets-4136462
Published: Jul 15, 2025 3:06 PM

By Fergal Smith TORONTO (Reuters) -The Canadian dollar edged lower against its U.S. counterpart on Tuesday, but the loonie declined less than the other Group of 10 currencies as domestic inflation data reduced expectations for Bank of Canada interest rate cuts. The loonie was trading 0.1% lower at 1.3715 per U.S. dollar, or 72.91 U.S. cents, after trading in a range of 1.3672 to 1.3729. Canada’s annual inflation rate rose to 1.9% in June from 1.7% in May, meeting analysts’ expectations, while CPI-median, one of the core measures of inflation closely tracked by the BoC, rose to 3.1% from 3%. "Today’s uptick in core inflation coupled with the upside surprise in June’s labor report means the Bo...

Market context: This update is relevant to USD traders, with USDCAD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.