“(We) should see much clearer evidence next spring that inflation is moving down,” added Governor of the Bank of Canada, Tiff Macklem while speaking to business leaders in Vancouver.

The policymaker also added, “We are starting to see some improvements in the balance in the labor market.”

“Inflation is well above our target and it is a long way back to our 2% target,” adds BOC’s Macklem.

Earlier in the day, BOC Governor Macklem praised the Canadian central bank’s monetary policy while turning down inflation risk.

Also read: Bank of Canada says higher rates are starting to work, frets over inflation risk

USD/CAD rebounds

USD/CAD bounces off the latest trough surrounding 1.3625 to 1.3637 following the comments from BOC’s Macklem. However, the upside momentum remains doubtful as traders await the US inflation data on early Tuesday.

Also read: Forex Today: US inflation and central banks coming up next