Canadian Dollar Weakens with CPI data around the corner

As CAD traders braced themselves for a new batch of Canadian Consumer Price Index (CPI) inflation numbers due during the mid-week phase, the Canadian dollar lost ground at the beginning of the trading week, plunging into the low end on Monday across the major currency board.

On Tuesday, the Bank of Canada (BoC) is scheduled to disclose its own core CPI basket print concurrently with the release of Canada’s most recent inflation statistics. On Friday later this week, Canadian Retail Sales data will be disclosed, and BoC head Tiff Macklem will make a new appearance. Naturally, the US Federal Reserve’s much-awaited rate decrease, which is scheduled for this Wednesday, will be the main event for world markets this week.


On Monday, the Canadian dollar saw a general downward shift. This week, Canada releases its most recent CPI inflation figures. Data on Canadian retail sales and a speech by BoC’s Macklem are due on Friday.

The Canadian Dollar eased back on quiet Monday flows:

After printing 0.4% in July, the Canadian MoM CPI inflation data, which is coming on Tuesday, is predicted to drop back to 0.1% in August. The chance of significant chart movements before of the Fed’s scheduled rate call on Wednesday has decreased as a result of the global markets’ turn towards it.

According to the CME’s FedWatch Tool, market players are becoming more and more certain that the Fed will begin the next cycle of rate cuts on Wednesday with a 50 basis point decrease, with only 40% chance of a 25 basis point cut. Friday’s events include a speech by Governor Macklem of the Bank of Canada and the most recent data on retail sales in Canada.