The CAD lost, but only briefly, before returning to the lows of 1.36 it was at before Tuesday’s reports. Shaun Osborne, chief currency strategist at Scotiabank, discusses the outlook for the CAD.
The data combination couldn’t have been worse for CAD
The data mix couldn’t have been worse for the CAD on Tuesday, with Canadian CPI coming in below forecasts and US data generally beating expectations across the board.
The September CPI results reduce the risk of short-term tightening and, for the moment, leave the bar quite high for any further tightening moves. But the threat of tighter policy has not been completely extinguished, given high wage growth and inflation expectations.
In the near term, choppy trading looks likely as lower risk appetite and rising crude oil offset each other, but if Tuesday’s data combination couldn’t push funds above 1.37, I wouldn’t mind. it is clear what will do it (barring a major shake-up).
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.
