USD/CAD: Times are likely to remain tough for the Loonie – Commerzbank
|Yesterday’s Canadian inflation data for February was weaker than expected. Economists at Commerzbank expect the Loonie to remain under downside pressure.
Canadian inflation rates in February slightly better than expected
“The overall rate fell more notably than expected from 5.9% to 5.2%. The core rates (trim, median) on average fell as expected, leaving them slightly below the 5% mark.”
“The data is likely to have now made it clear for the market that further rate hikes are unlikely for the time being, above all while inflation continues to trend downwards. That is putting pressure on the Loonie, as it stands in contrast with the market’s Fed expectations.”
“As market attention will today focus on the Fed decision, the minutes of the last BoC meeting will remain an aside, in particular as the meeting was held prior to the recent financial market turbulence.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.