FXstreet.com (Barcelona) - The Loonie is losing some ground against its fellow neighbor on Friday, after the softer-than-expected inflation figures in the Canadian economy. The ongoing crisis in the euro zone, with focus in Spain, is bolstering the demand for the buck, thus heavily impacting on the comm-currencies.
According to E.Theoret, anayst at Scotiabank, “…the BoC is currently one of the most hawkish central banks as many of its peers …a fact that has yet to be reflected among market participants…”
Although CPI came in lower than estimates, they represent a raise from previous prints, and the analyst suggests that “…a rebound for both readings will lend support to CAD in terms of reversing the recent decline and should reduce existing market expectations of dovish BoC policy given the focus on the 2.0% inflation target. We expect USDCAD to trade within a range bound between 1.0066 and 1.0107…”.
According to E.Theoret, anayst at Scotiabank, “…the BoC is currently one of the most hawkish central banks as many of its peers …a fact that has yet to be reflected among market participants…”
Although CPI came in lower than estimates, they represent a raise from previous prints, and the analyst suggests that “…a rebound for both readings will lend support to CAD in terms of reversing the recent decline and should reduce existing market expectations of dovish BoC policy given the focus on the 2.0% inflation target. We expect USDCAD to trade within a range bound between 1.0066 and 1.0107…”.
