CAD strength holding post-CPI, watching BoC tone
Interesting to see $CADUSD maintain its footing after the CPI print this morning, currently sitting at 0.71711. The core numbers weren't as hot as some feared, which is giving the Loonie a bit of a bid. I'd expected more of a whipsaw with the initial release, but it's been surprisingly steady. This strength comes even as $USDX ticked up slightly to 25.505. Feels like the market is pricing in a slightly more hawkish BoC than previously thought, or at least removing some of the dovish scenarios. Will be key to see what commentary comes out over the next few days to confirm if this move has legs or if it's just a temporary re-evaluation. My watchlist is now focusing on CAD crosses, looking for potential entries if this BoC sentiment continues to firm up, particularly against weaker counterparts.
Agreed, the stability is noteworthy. I'm wondering if the market is reading into the BoC's potential willingness to diverge from the Fed more than previously thought, especially with that steady core CPI.