- PA action looks over done - Price corrected 50 pips back to the 1.5085 - 1.51 zone. - In regards to CPI numbers today - "Inflation fell by just -0.1% during December when markets had looked for a second consecutive -0.4% decline as the last of the final quarter's 30% decline in oil prices worked its way through into the cost of gasoline at fuelling stations. This was enough to push the annual rate of inflation back up to 2% when economists had been looking for it to hold steady at 1.7% in December. Core inflation, which excludes volatile items like gasoline from the goods basket measured, fell by a steeper -0.2%. Meanwhile the Bank of Canada's (BoC) own three measures of core inflation continued to average 1.9% for the December month, unchanged from the level seen back in November. "Headline inflation bucked expectations for a soft print, but only because of a recent methodology change to the way airline fares are calculated," says Royce Mendes, an economist at Toronto-headquartered CIBC Capital Markets. "According to the new methodology, airline fares were up 22% on the month."