2023.09.1914:39:00UTC+00Canadian Dollar Climbs As Inflation Jumps

The Canadian dollar appreciated against its major counterparts in the European session on Tuesday, as the nation's annual consumer inflation accelerated more than expected in August.

Data from Statistics Canada showed that the consumer price index rose 4.0 percent year over year in August, following a 3.3 percent increase in July.

Economists had expected a 3.8 percent increase.

On a seasonally adjusted monthly basis, the CPI rose 0.6 percent, unchanged from the previous month.

Core CPI, excluding food and energy, eased to 0.3 percent from 0.4 percent last month.

The loonie strengthened to a 1-year high of 110.44 against the yen and more than a 3-month high of 1.4303 against the euro, off its early lows of 109.37 and 1.4423, respectively.

The loonie climbed to multi-week highs of 1.3378 against the greenback and 0.8648 against the aussie, from its early lows of 1.3489 and 0.8691, respectively.

The currency is seen facing resistance around 113.00 against the yen, 1.40 against the euro, 1.32 against the greenback and 0.84 against the aussie.