USD/CAD Analysis: Loonie Strength Continues Ahead of Key Inflation Data Release
2021-05-18 20:30:00
Brendan Fagan,
Bank of Canada, Inflation, USD/CAD Talking Points:
Loonie strength continues, USD/CAD trading at levels not seen since May 2015
Bank of Canada remains steadfast in their commitment to 2% inflation target
Bank of Canada’s recent taper of asset purchases was the fuel for the recent move
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USD/CAD traders will be looking to Wednesday’s inflation data for clues as to the pair’s next move. Since the Bank of Canada (BoC) announced a taper of asset purchases last month, USD/CAD has fallen to lows not seen since 2015. The buoyancy in the Canadian Dollar has caught the attention of Canada’s central bank, with Governor Tiff Macklem saying continued Loonie strength may create headwinds for investment and exports in the near future.