Canada: Headline inflation firmed to 1.9% in March - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that the Canada’s headline inflation firmed to 1.9% in March, matching market expectations, but the bigger story was a pickup in core inflation measures which firmed to 1.97% y/y on average following upward revisions to February.

Key Quotes

“We would fade the move in core CPI, as it was largely attributable to base-effects and is unlikely to be repeated going forward. Moreover, the growth outlook remains relatively muted especially after a sharp drop in real exports for February.”

“FX: The loonie took its cue from the beat on the core measures with a knee-jerk lower although the poor local backdrop should keep USDCAD contained to the 1.32-1.36 range.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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