In Canada, Consumer Price Inflation (CPI) is due today. Core inflation measures are likely to be of great interest as will give an indication as to how much further monetary policy tightening in Canada is likely to go. Nonetheless, the USD/CAD pair is set to remain above the 1.30 level, economists at Commerbznka report.

Core inflation is what matters

“If the core inflation data were to surprise to the upside, similar to the data from the US recently, the market is likely to increase its expectations for the level at which the key rate will peak. CAD might be able to benefit briefly.”

“The environment remains difficult for CAD though. High market uncertainty and the fall in commodity prices combined with USD remaining at high levels mean that levels below 1.30 in USD/CAD might remain out of reach for now.”

See – Canadian CPI Preview: Forecasts from five major banks, core inflation to stay high