CAD looking interesting post-CPI, watching for BOC cues
Anyone else keeping a close eye on $CAD after that CPI print this morning? It came in a touch cooler than some were expecting, which has got me thinking about the BOC's room to maneuver. We've seen CAD bounce around a bit lately, and with the US dollar index showing some strength, it's making for a tricky read.
My take is that if we get a few more data points pointing to cooling inflation, the market might start pricing in an earlier cut from the BOC. That could put some pressure on CAD, especially against the stronger majors. Currently, the CAD is sitting around 95.879, and I'm watching that level closely to see if it holds or if we see a break. Not making any moves yet, but definitely keeping it on the watchlist for potential weakness. What are your thoughts on BOC's next steps and how it impacts your CAD pairs?
The cooler CPI certainly gives the BOC more breathing room, but I'm not convinced it's enough for a dovish pivot just yet. The US dollar strength is a significant factor here; CAD is fighting an uphill battle.