Today, CAD traders are likely to be sitting on the edge of their seats in anticipation of Canada’s CPI data for January. Expectations are for inflation to slow, which could disappoint those expecting the next BoC rate hike to come at the next meeting. Yesterday, the ECB minutes contained no surprises, with the common currency reacting little to the release.
Loonie Traders Fix Their Gaze on Canada’s CPI data
The US dollar underperformed most of its G10 rivals yesterday, with the main gainers being CHF and JPY. The greenback gained only against NZD and CAD, while it traded virtually unchanged versus SEK.
The Canadian dollar was one of the two losers against the US dollar yesterday. The currency slid after Canada’s retail sales data for December disappointed. Headline sales declined 0.8% mom instead of stagnating as the forecast suggested, while core sales fell 1.8% mom, confounding expectations for a modest increase of 0.1% mom.
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