Forecast: How will Canada CPI data affect USD/CAD?

ForexNewsNow | Published on November 23, 2010 at 5:24 am

canada cad usd dollar forex analysisNEW YORK (Forex News Now) – Statistics Canada is due on Tuesday to publish monthly data on changes in the Consumer Price Index, in a major realtime forex news event.

The report is expected to show an inflation rise of 0.2% in October, according to analysts. This would match the September reading of 0.2% and bring the 12-month inflation rate to 2.1%.

The department is set to release the report at 7:00 A.M., ET, so the data should have an impact on North American currency market trading.

However, USD/CAD trading may also be affected by release later in the day of monthly data on existing home sales in the United States.

According to analysts, the relative stability of Canada’s CPI should keep the Bank of Canada on the sidelines when it comes to interest rate policy, meaning that the report should have a minimal impact on the loonie.



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