Canada

Canada’s CPI is projected to slow for the fourth consecutive month in September, with the headline reading seen falling to 1.8% from 2.0% per annum in August.

Canada’s Retail Sales report is anticipated to show another contraction in June, with household spending projected to fall 0.3% following the 0.8% decline the month prior.

Canada’s CPI is expected to decline for the second consecutive month, with the headline reading projected to narrow to 2.5% in July from 2.7% per annum the month prior.

The update to Canada’s Employment report showed a 1.4K contract in June versus forecasts for a 22.5K rise, while the jobless rate widened to 6.4% from 6.2% during the same period.

The pullback from April's high has seen USD/CAD find support around 1.36 but, with CAD traders remaining heavily net short, USD/CAD needs to rally to justify their bearish exposure.

USD/CAD is not unfamiliar to ranges, and prices have pushed up to test a key spot of range resistance as deviation has shown between U.S. and Canadian monetary policy.

With the odds of a Fed cut arriving this year now in jeopardy, it is now over to the BOE, ECB or BOC to take the title as ‘first to begin easing’. And that brings Canadian CPI data into focus today for CAD traders.

With traders keen to see who will be the first among the BOE, BOC or RBNZ to cut rates, their attention will be surely on next week's inflation reports for their respective regions.

USD/CAD has been one of the stronger major pairs during the recent theme of US Dollar strength and after setting another fresh two-month-high this morning, the pair appears to be setting the stage for a pullback. Bulls have fiercely defended 1.3500 since the break – can they continue to hold the big figure?

The US Dollar has been in a strong bullish move over the past month but that’s been expressed well in USD/CAD, where USD strength has been matched with CAD weakness. USD/CAD tested a fresh two-month-high this morning while testing above a key psychological level at 1.3500. Can bulls hold the trend with higher low support at prior resistance?

USD/CAD extended a bullish breakout this week while starting re-test of the 1.3500 psychological level. Bulls held the move despite US CPI coming in below expectations and CAD/JPY retains breakout potential given an ascending triangle formation. EUR/CAD on the other hand may offer some pullback potential given a hold at a key Fibonacci level of resistance.

USD/CAD snapped back aggressively on Friday, bringing to question a recovery move ahead of the Bank of Canada rate decision scheduled for this Wednesday.

CAD/JPY has piqued our interest ahead of today's economic data, which includes PMI's for Europe and the US and Canada's inflation and retail reports.

During a hawkish speech, the BOC governor outlined which of the three ‘preferred’ CPI measures they will no long focus on, and why.

During a hawkish speech, the BOC governor outlined which of the three ‘preferred’ CPI measures they will no long focus on, and why.

Sometimes the obvious needs to be said. And that is exactly what the BOC’s deputy governor said in his op-ed by stating inflation “remains far too high”.

Whilst inflation has been hard to ignore, we are now seeing signs that the cooling of inflationary forces are finally showing up in some consumer prices.