The surge in Canadian inflation is seen as failing to stimulate the movement of the loonie dollar to record gains against the US dollar.
According to a report released by the Department of Statistics, Canada’s annual inflation rose to its highest level since 2003 at 4.7% in October from 4.4% previously recorded.
However, on a monthly basis, the consumer price index (CPI) was recorded in line with market expectations to increase by 1.7%. While the average CPI reading, which is a measure of the performance of the Canadian economy, is seen to have strayed from expectations with a record unchanged at 1.8%.
This made the loonie dollar trade fail to react, instead slipping lower to its weakest level in six weeks. In the European session, the loonie traded around 1.2600 against the strong greenback dollar.
In addition, the commodity currency was also affected by the decline in world crude oil prices after the United States reportedly urged the world's major consumers, China and Japan to use supplies in their oil reserves to help ease high oil prices.
Crude oil trading fell to a six -week low following the report.
