CAD review

Western Union:

Friday was off to a happy start for CAD buyers as the loonie hit one-month lows. The loonie was injured by news today of a bigger than expected fall in area inflation. 

Inflation fell further behind the Bank of Canada's goal of 2 percent, slipping to 0.8 percent annually in April. The core number unexpectedly fell by a notch to 2.3 percent. Retail sales rose 0.7 percent in March but that was less than half the prior month's surge of 1.5 percent. 

Cooler inflation will increase the risk of the Bank of Canada coming across more cautiously when it renders a policy decision on May 27.