Canadian Dollar Analysis and news
- Canada’s inflation remains high – BoC Vigilant
- Upward risk to CAD oil High edge
Canada’s inflation remains high – BoC Vigilant
Inflation data for Canada were printed better than expected at 0.2% (vs 0.1%) and 4.1% (vs 3.9%), respectively, at both monthly and annual rates. Meanwhile, BoC recommendations (median, trim, average CPI) rose from 2.46% to 2.56%. Unlike the Federal Reserve Board, the BoC seems to be paying more attention to inflation risk, with Governor McClem saying he will closely monitor inflation data. While this is unlikely to change the BoC’s decision to slow the pace of asset purchases at the October meeting, the numbers will be more important when it comes to the timing of rate hikes currently priced in the second half of 2022. There is a possibility. Therefore, if inflation remains high, the risk will be tightened early and Rooney will be at an upward risk.
Market reaction: Overall, the relatively modest reaction of the Canadian dollar, with great attention paid to risk appetite. That said oil Prices are trading and CAD looks relatively cheap.
USD / CAD (Inv) vs Brent Crude
CPI is high and CAD faces upward risk
Source link CPI is high and CAD faces upward risk