Canadian dollar notches two-week high as stocks rally, inflation cools

from 5.9 per cent in January, beating economists’ forecast that it would fall to 5.4 per cent, helped by a drop in gas prices and softer growth in shelter costs.

Money markets were little changed after the data, continuing to see a 15 per cent chance that the BoC would cut interest rates by 25 basis points at its next policy decision on April 12 and pricing in 43 basis points of easing by the end of the year. The Canadian dollar was trading 0.1 per cent higher at 1.3645 to the greenback, or 73.29 U.S. cents, its strongest level since March 7.

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