CAD CPI In Focus
Today’s Canadian CPI print will be the key data focus for the US session. CAD has been one of the strongest performers of 2022 in light of the uptick in oil prices and hawkish BOC expectations. With that in mind, today’s data has the potential to further accelerate the rally, or hit the brakes. The headline monthly CPI reading is forecast to have fallen back a little last month to -0.1%, from the prior month’s 0.2% reading. Given this low estimate, any upside on this projection will give a firm boost for CAD, keeping the focus on BOC tightening. Additionally, given the strength in oil prices, any downside might struggle to stop CAD in its tracks.
Where to Trade CAD CPI?
The rally in CADCHF off the December lows has seen the market breaking through the bear channel top. While the rally struggled initially at a test of the .7367 level, the subsequent retest of the broken channel has seen price turning higher once more. With both MACD and RSI bullish, the focus is on a break of the .7367 level, targeting a run up to .7496 next.