The publication of the CPI in Canada this afternoon can change the expectations for the meeting of the Bank of Canada tomorrow, the OCBC currency analysts, Frances Cheung and Christopher Wong point out.
USD/CAD can continue to quote below 1.40 for now
“The consensus is that there will be a slight increase in March inflation, both to the general extent (from 2.6%to 2.7%) and in the underlying measures (medium and trimmed rising to 3.0%). If inflation is not surprising down, markets can consolidate the marginally prevailing opinion that the BOC will remain waiting tomorrow, which is also our forecast.”
“However, the BOC and Canadian inflation should continue to be a secondary engine for global actions and the USD/CAD trusted crisis.
“As discussed above, we do not believe that there is a quick deactivation of that risk premium, so the USD/CAD can continue to quote below 1.40 for now. A decision to maintain by the BOC would help sustain the profits of the CAD, even if it will not be a radical change.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
