The annual inflation rate in Canada, as measured by the Consumer Price Index (CPI), reached its lowest level since June 2021, coming in at 3.4%, in line with market expectations. This deceleration was primarily driven by a decrease in the annual price of gasoline (-18.3%) due to base-year effects.
On a monthly basis, the CPI rose by 0.4% in May, slightly lower than the analysts’ forecast of 0.5%.
Based on the assessment that inflation is stabilizing, I have entered a long position on EUR/CAD with a bias towards selling CAD.
