Despite forecasts for another 0.8% print for Canada’s headline Consumer Price Index (CPI), a slowdown in the core rate of inflation may drag on the loonie and encourage a more bullish outlook for USD/CAD as it raises the Bank of Canada’s (BoC) scope to keep the benchmark interest rate on hold for an extended period of time. The BoC may carry its current policy into 2016 as it continues to endorse a wait-and-see approach, but positive developments coming out of the region may put increased pressure on the central bank to further normalize monetary policy as Governor Stephen Poloz turns upbeat towards the economy. (full story)