Canadian Dollar flat against US counterpart head of US CPI, Fed decision

On Monday, the Canadian dollar was largely unchanged vs the US dollar. This week, Canada is largely absent from the economic calendar. BoC Macklem’s speech is expected during the midweek trading session.

As we begin a new trading week, the Canadian dollar is staying steady vs the US dollar because there isn’t much movement in the CAD market. Despite a lack of momentum, markets are still recuperating from Friday’s jobs news, and volatility is still strong.

On Monday, Canada is essentially absent from the economic calendar; all of the data available is of a low quality. On Wednesday, Governor Tiff Macklem of the Bank of Canada (BoC) will give a lecture at a panel discussion themed, somewhat cynically, “Overcoming Economic Volatility.” Nonetheless, a doubleheader of US Consumer Price Index (CPI) and Federal Reserve (Fed) rate calls that are also scheduled for Wednesday are likely to eclipse the BoC Governor’s remarks.

On a data-starved Monday, the Canadian dollar is remaining unchanged compared to its nearest rival, the US dollar, as the Friday NFP hangover persists. Investors are anticipating the release of important US inflation statistics on Wednesday as well as an update from the Fed regarding its interest rate projections for the upcoming several years.

According to a consumer survey released by the New York Fed on Monday, consumers are still not very optimistic about the long-term prospects for inflation.
According to the median results of the NY Fed survey, consumer estimates for inflation over the next year decreased slightly from 3.3% to 3.2%, but predictions for inflation over the next five years increased from 2.8% to 3.0%. It is anticipated that BoC’s Macklem would be outshined on Wednesday by changes in Fed rate projections.