Today, the US Bureau of Labor Statistics will publish March Consumer Price Index (CPI) data while the Bank of Canada (BoC) will announce its interest rate decision. Economists at Société Générale analyze how could the USD/CAD pair react to these high-tier events
BoC forecast to keep rate unchanged at 4.50%
“There should be no surprise in Canada today, where the central bank is forecast to hold rates at 4.50% for the second meeting. Above-forecast GDP growth of 0.5% MoM in January, followed by a solid February output growth of 0.4% and modest March employment gains, strengthen the case for a bearish pause.”
“A hot US CPI print would create upside risks, but an unfavorable outcome could trigger short covering and lead the Loonie to the 200-DMA at 1.3395.”
see:
US CPI: Banks preview, inflation softening, good news on the horizon?
BoC preview: Forecasts for eight major banks, side by side
