Canadian dollar is not going to have a good time forward on. Why? Well, because oil is not doing its best lately, and it is one of the most popular and well-known intermarket correlations out there – oil and CAD. Canadian national currency being very dependent on oil, always mirrors the movements of the crude. And of course, with crude losing the per-barrel price, CAD is losing power as well. It is natural and well-know. But that is not all.
Today we were also waiting for the CPI m/m report which is a primary early gauge for measuring inflation in the country. Among others this report forms a basis for the possible future altering of interest rates in the country. Pressure on Canadian dollar was at quite a sufficient level yesterday already. Today, with the report and recovering USD it reached new height. Despite of all of that, there are little signs that Canadian economy is going to reverse the bullish momentum. So. Even though CAD is in a lot of troubles right now there no point for us to fear for the overall strata of Canadian economy just yet.
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