Previous Trading Days Events 20 Feb 2024

Canadas CPI data release yesterday showed that Canadas annual inflation rate slowed more than expected to 2.9 in January and core price measures also eased. Headline inflation has dipped below 3 and that prompted money markets to hike bets for a rate cut in April.

The Bank of Canadas next policy announcement is March 6, and expectations are that rates will stay on hold at a 22year high of 5. Analysts polled by Reuters had forecast inflation to tick down to 3.3 from 3.4 in December.

The Bank of Canada targets inflation at 2. Two of its three core measures of underlying inflation also edged down. CPImedian slowed to 3.3, the lowest since November 2021, while CPItrim decreased to 3.4, the lowest since August 2021.

The key takeaway here is that the Bank of Canada can seriously consider cutting rates, Doug Porter, chief economist at BMO Capital Markets.

The Bank of Canada will likely remain cautious in the face of stillstrong wage gains, firm services prices, and the reality that core inflation is still holding above 3, said Porter from BMO.

Sources httpswww.reuters.comworldamericascanadasinflationratedropsmorethanexpected29january20240220

Winners vs Losers

NZDUSD climbed to the top with 1.11 performance this week followed by the AUDCAD with 1.07 performance. USDJPY remains the leader for the month with 2.10 gains.

News Reports Monitor Previous Trading Day 20 Feb 2024

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