USD/CAD is in its consolidation phase – BBH
USD/CAD is consolidating around 1.4330, BBH FX analysts report.
High inflation and unfavorable growth prospect are bad news for CAD
"Bank of Canada (BOC) Governor Tiff Macklem delivered a cautious yet pragmatic speech yesterday. Macklem warned 'Depending on the extent and duration of tariffs, the economic impact could be severe. The uncertainty is already causing harm. We need to make sure that a tariff problem doesn’t become an inflation problem'.”
"Canada headline and core CPI inflation are tracking above the BOC Q1 projection. The implication is the BOC has limited room to ease policy further to offset the drag to growth from heightened trade policy uncertainty. The combination of high inflation and unfavorable growth prospect is not good news for CAD."
"Statistics Canada’s advanced retail indicator suggests sales decreased -0.4% m/m in January after rising 2.5% in December. The outlook for household spending activity is not encouraging. A Bank of Canada survey conducted from January 29 to February 28, show Canadians are more worried about their job security and financial health as a result of the trade tensions, and they intend to spend more cautiously."
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
