Canadian CPI Data

The Canadian Dollar has been on a bit of a rout as of late and is now flirting with the 1.1000 level in the USDCAD currency pair. There are several big economic reports this week which can either help the USDCAD breakout above the 1.1000 level and rally higher or fall short and enter a bigger correction.

I expect the Bank of Canada to leave rates unchanged which would make the CPI data the final barrier for this week. Inflation has not been a factor in Canada and has been well contained, but any surprise out of the CPI is likely to add 100+ pips in either direction. I have a short bias on the USDCAD and am taking my shorts before the Bank of Canada announcement as well as CPI data, but please do your own research and analysis on this and do not blindly follow anyone.