# Canadian dollar jumps half a cent as inflation hits three-year high, boosting chances of rate hike - Financial Post

> The Canadian dollar strengthened to an 11-day high after Statistics Canada reported annual inflation of 2.2%, a three-year high. Chances of a Bank of Canada hike in May rose to 82%, while January retail sales were weaker than expected.

- Date: 2018-03-23 · published 2018-03-23T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/66241-canadian-dollar-jumps-half-a-cent-as-inflation-hits-three-year-high-boosting
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Higher Canadian rates and a firmer loonie make Canadian exports pricier and shift currency flows, which can affect Canadian canola and pulse export competitiveness. The move is a modest currency driver rather than a direct grain price event.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- financialpost.com: https://financialpost.com/economy/canada-fx-debt-c-rallies-as-rising-inflation-boosts-rate-hike-chances/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.