Canadian Dollar Attempts to Rebound

2026-01-19 14:01 By Felipe Alarcon 1 min. read

The Canadian dollar strengthened past 1.38 per US dollar, attempting to rebound after trading in a narrow range near early December lows as investors digested a mixed inflation report and a softer US dollar.

Headline inflation unexpectedly rose to 2.4% in December, above consensus and slightly firmer than the Bank of Canada’s near-term projection that CPI would hover near the 2% target.

While the median core inflation rate eased to a one-year low of 2.5%, signalling some moderation in underlying price pressures, the combination of firmer headline inflation and resilient demand argues for a more cautious pace and timing of rate cuts.

The loonie has also drawn support from oil amid steady export flows to the US, constrained near-term supply growth, and a relatively tight North American crude balance that has helped stabilize energy revenues and Canada’s trade outlook.

In the meantime, the US dollar weakened following renewed tariff threats from Washington.



News Stream
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