The Canadian dollar was generally weak against most of the majors, but the currency was able to make headway versus the US dollar as USD/CAD broke below key trendline support. The move could continue on Thursday as the 7:00 ET release of CPI for February is anticipated to rise after contracting for the fourth straight month in January by 0.3 percent. Indeed, CPI is expected to rise 0.3 percent, but the annualized pace is forecasted to slip to a more than 2-year low of 1.0 percent. Meanwhile, the Bank of Canada’s core CPI measure may fall down to a 7-month low of 1.5 percent from 1.9 percent. Given the sharp drop in commodity prices since the summer and slowing in the Canadian economy, there is potential for weaker-than-expected readings and thus, the Canadian dollar could pull back further. However, if the annualized CPI measures actually hold steady or rise, the currency could surge.
Related Article: Canadian Dollar Weekly Trading Forecast
To read about the day's economic developments, see Daily Fundamentals.
