2023.02.2114:23:00UTC+00Canadian Dollar Retreats As Annual Inflation Slows

The Canadian dollar eased against its major counterparts in the New York session on Tuesday, as the nation's annual inflation slowed more than expected in January.

Data from Statistics Canada showed that the CPI rose 5.9 percent year over year in January, following a 6.3 percent increase in December. Economists had expected consumer prices to increase by 6.1 percent.

Excluding food and energy, prices rose 4.9 percent on a yearly basis in January, following a gain of 5.3 percent in the previous month. Economists had expected a 5.5 percent increase.

The CPI rose 0.3 percent on a seasonally adjusted monthly basis in January, following a flat reading in December.

Core CPI, excluding food and energy, eased to 0.1 percent from 0.3 percent in the previous month.

The loonie retreated to 99.84 against the yen and 1.4403 against the euro, from its early fresh 2-month high of 100.30 and a 5-day high of 1.4327, respectively.

The loonie retraced its early gains against the greenback and touched a 4-day low of 1.3508.

The loonie eased to 0.9278 against the aussie, off an early 4-day high of 0.9237. This may be compared to a 6-day low of 0.9311 seen in the Asian session.

The loonie is seen finding support around 98.00 against the yen, 1.45 against the euro, 1.36 against the greenback and 0.94 against the aussie.