That hotter-than-expected CPI number out of Canada definitely caught my eye. While $CAD 95.879 is flat right now, the upward pressure from rate hike expectations could give it some legs against weaker currencies. I'm keeping an eye on $EURCAD around 1.60853; if we see a sustained break below 1.60633, it might indicate further strength for the loonie. Just watching for now, not making any moves.
I'm also watching the CAD closely after that CPI print. While a rate hike would certainly provide support, I wonder how much of that is already priced in, especially against the USD given its own inflation story. The EURCAD setup is interesting though.
I'm with you on keeping an eye on the CAD. While the CPI was hot, I'm a bit more cautious on how much further rate hike expectations can fuel it, especially with the global growth concerns. What's your take on how sensitive the CAD is to broader market sentiment versus just local inflation data right now?
CPI was hotter, sure, but CAD strength often hinges on oil, which isn't exactly surging right now. I'd be cautious betting on rate hike expectations alone.