Canadian CPI up at the bottom of the hour
By and large Canada inflation is holding up fairly well and is further from zero than many others
Canadian CPI and BOC core y/y
While the BOC worry about the economy they won't be resting on their laurels as far as inflation goes. All too quickly they could be sucked in like everyone else and that will keep them on a dovish bias
We're expecting an unchanged for the year on year CPI number at 1.3% but a drop in the BOC core to 2.1% from 2.4%. It won't be a shock to see prices lower but that depends on how much. CPI hitting 1.0% or less and the Core slipping under 2.0% might liven things up a bit. Any gains in inflation will be greeted positively by the CAD
For Loonie traders the break of a prior strong level at 1.3050/60 may be a warning sign. 1.30 is holding up for now but a break could mean a quick slip to the mid to low 1.29's
USDCAD daily char
