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Canadian Inflation Data Drags USD/CAD South of 1.10
Canada’s CPI data for March came in at 0.6% on the month and 1.5% on the year. The forecast around 0.4% for the monthly rate, and 1.4% for the annual rate. Although not at the 2.0% target, the inflation rate in the past 3 months (Jan: 0.3%, Feb: 0.8%, Mar. 0.6%), eases any deflationary risk concerns. The annual rate also rebounded from the 1.1% in February, so it was a good sign that inflation stabilized and is working back towards the 2.0% target. The market reacted CAD-positively, and the USD/CAD fell, stalling the bullish outlook in the 1H chart, which started last week. I am not convinced that the CPI data ... (full story)