The post USD/CAD delivers V-shape recovery above 1.3500 on soft Canadian Inflation data appeared on BitcoinEthereumNews.com.

USD/CAD rebounds strongly to 1.3500 as soft Canadian inflation data raise BoC rate-cut hopes. The USD Index remains under pressure as the Fed sees inflation moving in the right direction. Investors await the FOMC minutes for fresh guidance on interest rates.  The USD/CAD pair rises as Statistics Canada has reported softer-than-forecasted inflation data for January. The monthly headline inflation remained stagnant while investors anticipated a sharp rise of 0.4%. In December, the inflation data was contracted by 0.3%. The annual headline inflation rose at a slower pace of 2.9% from expectations of 3.3% and the former reading of 3.4%. The core Consumer Price Index (CPI), published by the Bank of Canada (BoC), which excludes volatile food and oil items, decelerated to 2.4% from 2.6% in December. Monthly, the underlying inflation data rose slightly by 0.1% after deflating by 0.5% in December. A slower-than-projected increase in inflation data is expected to push back expectations for the BoC, maintaining interest rates at 5% for longer. Meanwhile, the market mood remains upbeat as the Federal Reserve (Fed) is confident that inflation is declining towards 2%, and the one-time increase in the Consumer Price Index (CPI) data for January is insignificant. Investors see different price actions in risk-perceived assets. S&P500 futures have posted significant losses in the European session while risk-sensitive currencies have been underpinned against the US Dollar. The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, has printed a fresh five-day low near 104.00.   Source: https://www.fxstreet.com/news/usd-cad-delivers-v-shape-recovery-above-13500-on-soft-canadian-inflation-data-202402201342

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Filed under: News - @ February 20, 2024 7:12 pm