The Canadian dollar fell to virtually a 1-week low against the USD on Wednesday. This came after oil prices dropped and stock markets traded lower as statistics indicated a lower underlying level of inflation.
The country’s yearly inflation rate crept up from 1.9% in March to 2% last month, pushed partly by a carbon levy that impacted on gasoline prices in six provinces. Two of the BoC’s thee measures of core inflation, however, showed a decline.
After the report the probability that the central bank would reduce interest rates before the end of 2019 increased marginally to just over 40%.