Bank of Canada Deputy Governor Paul Beaudry said on Tuesday that the pressures keeping inflation high should start "moving away" next summer, according to Reuters. Beaudry has been speaking in a virtual speech to a provincial regulator about the housing market. According to the deputy governor, the pandemic has intensified two of the main financial vulnerabilities faced by the Canadian economy; housing market imbalances and high levels of household debt.

Market Reaction

USD/CAD has not seen any noticeable reaction to the latest comments from BoC's Beaudry. The pair has been under pressure in recent trade amid an ongoing rise in crude oil prices and breifly dropped back under 1.2700, where it trades flat on the day.