The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
Will the inflation data support the CAD?
Canada will release the monthly consumer price index (CPI) on February 27 at 15:30 MT time.
Last month the level of consumer price index declined by 0.1%. However, it still was higher than the forecast. As a result, the CAD didn't suffer that much. This time the higher-than-expected level will be appreciated by the market again.
• In case CPI outperforms the forecast, the CAD will rise.
• In case CPI comes out lower, than the forecast, the CAD will fall.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!