This Wednesday the Statistics Canada office will publish the Consumer Price Index data for the month of August.
The data will be published after the Bank of Canada’s decision to keep monetary policy unchanged.
The entity maintains the purpose of the recovery of the economy through the recovery of employment and acceptable inflationary levels around 2 and 3%.
According to the BC, employment has recovered, but the recovery of the labor market remains uneven. This has been supported by the evolution of unemployment, where the data published in the last week, the rate found in a decrease towards 7.1%.
In line with the Bank’s objectives, inflation in August is projected to be 0.1%. The Bank of Canada acknowledges that the economy has cooled down with a contraction close to 1%, mainly due to problems in the supply chain and exports.
The Bank considers that the CPI, which would accumulate a sustained 3%, is of a transitory nature.
Therefore, after the data to be published tomorrow, they will be closely watched by Bank officials who will meet again in October. Higher than expected levels will be positive for the currency.
USDCAD holds on buy, area highs below 1.27. Ideally close buys of 1.2670 0 1.2680 until passing 1.27.