Canadian inflation starting to look soft?
While the headline Canadian CPI number came out in line with expectations at 2.0%, the market was also looking for a rise in the core rate from 2.1% to 2.6%, so the 2.0% reading may be taken on context as used to fade some of the outperformance we have seen in recent weeks.
Against the USD, this should temper any fresh attempts to challenge 1.3000 again, with recent dips having found strong support ahead of the psychological figure level. Earlier today, we saw the spot rate dipping under 1.3050, with buyers here quick to step in under this level.
All in all, the numbers do not argue for a strong move, either way, so all now rests on broader sentiment on the USD and how US stocks perform into the North American session.
Oil prices have been grinding lower, so there has been some added pressure on the CAD from this, though overall, tight ranges are still expected to continue through the rest of the day barring any surprise news.