The USD/CAD pair bounces back from 1.3600 support as Canada’s CPI data points to potential rate cuts by the Bank of Canada (BoC).
Canada’s annual headline CPI slows down to 2.5%, in line with expectations. This, along with a decline in core CPI, raises expectations of more rate cuts by the BoC.
Investors are now looking forward to Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium for clues on future interest rate cuts.
With easing price pressures and weaker Oil prices, the Canadian Dollar (CAD) is expected to face further pressure. The possibility of a ceasefire between Iran and Israel has led to a decrease in Oil prices, affecting Canada’s export income.
Stay tuned for Powell’s speech as it could have a significant impact on the US Dollar (USD) and the overall market sentiment.
Analysis:
The recent data from Canada and upcoming events in the US could lead to changes in interest rates and currency values. This could affect investments, trade balances, and economic growth in both countries. Keep an eye on these developments to make informed decisions about your finances.