New Canadian inflation figures for February will be released today. Commerzbank economists analyze how the report on the Consumer Price Index (CPI) could affect the CAD.
The Bloomberg consensus is currently subject to considerable uncertainty
Economists surveyed by Bloomberg expect a non-seasonally adjusted increase of 0.6% month-on-month, which should translate into a seasonally adjusted increase of around 0.26%.
If today's figures confirm the persistence of inflationary risks, the market could slightly retract its rate cut expectations. This would certainly be positive for the CAD.
However, it should also be noted that the Bloomberg consensus is currently subject to considerable uncertainty. The number of participants in the Canadian inflation data survey has decreased significantly in recent years. And even last month, the survey expected a solid increase, and in the end, prices actually fell. This is something to keep in mind for today.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
