The USD/CAD is trading lower and touching an intra-day low of 1.3232 this morning (stronger Loonie) after the Canadian consumer price index (CPI) for December 2018 came in at -0.1 percent when the read was at -0.4%. The CPI rose 2.0 percent on a year-over-year basis in December, following a 1.7 percent increase in November. Lower energy prices were offset by higher prices for various services, including air transportation, telephone services, and travel tours. Excluding gasoline, the CPI rose 2.5 percent in December.
Furthermore, the Loonie has been helped by the increase of crude oil WTI prices, which were over 1 percent in the last few hours due to signs of easing trade tensions between the US and China. This continued to push stocks higher in Europe and Asia, putting the most significant indexes on track to end the week with gains.
The moves came after US stocks rose for a third straight session thanks to optimism that the US would ratchet back tariffs on Chinese imports. The Wall Street Journal reported Thursday that US Treasury Secretary Steven Mnuchin proposed the idea of lifting some or all tariffs on Chinese imports to advance trade talks.