24.07.202615:21:56UTC+00Canadian Dollar Steady on Softer Inflation

The Canadian dollar traded at 1.41 per USD, retaining most of its rebound from the one-month low of 1.40 reached on July 17th, after weaker producer price data reinforced disinflationary momentum in Canada. Producer prices fell 1.4% month-over-month in June 2026, the steepest decline since December 2023. At the same time, annual consumer inflation slowed to 2.8% in June from 3.2% in May, coming in just below the 2.9% market forecast. The Bank of Canada's preferred core inflation measures dropped to their lowest levels in more than five years, supporting the BoC’s assessment that higher energy costs linked to the Middle East oil supply crisis are not feeding broadly through the economy. The softer inflation profile has reduced expectations for additional rate hikes by the Bank of Canada this year, narrowing the yield advantage that had been underpinning the Canadian dollar.