Market Overview

Week in FX Americas – Loonie Takes Flight In Wrong Direction

Another benign inflation reading from Canada has the CAD ending the week extending its losses above parity outright. The country's core-inflation rose by an annualized pace or +1.1% on Friday, well below Governor Carney and the Bank of Canada's medium term inflation target of +2%. So far the week the loonies plight has fallen -1.47% against its largest trading partner, south of the 49th parallel.

Yesterday's inflation report was closely watched especially after the Banks MPR report mid week suggested that “muted” inflation is a factor that would suggest that rate increases are “less imminent.” The domestic economy is obviously slowing, but at what pace? Governor Carney's less hawkish stance coupled with a commodity sector with its own troubles has the ability to push USD/CAD towards techies short term target of 1.0250.

 

US Budget Discord Threat To Global Economy

Poll: U.S. Government's Finances is the...

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Economics Markets Trading Ideas

 

Related Articles

Around the Web, We're Loving...

Get Benzinga's Newsletters