Commenting on the latest inflation data, which showed that the annual CPI jumped to a 39-year high of 7.7% in May, Bank of Canada Senior Deputy Governor Carolyn Rogers said that it was an "unwelcome number," as reported by Reuters.

Additional takeaways

"May cpi data were not totally unexpected."

"CPI s too high, it's hurting Canadians, it's keeping us up at night."

"We are seeing some impact of higher rates."

"I think it's a little ways away yet before inflation starts to bend down."

"We do need to see prices levelling off, not continue to increase, that alone will start to bring inflation down."

"A complete retrenchment from globalization would probably have a negative impact on low and stable inflation."

Market reaction

USD/CAD continues to pull away from daily highs and was last seen trading at 1.2935, where it was up 0.1% on a daily basis.