Canada CPI Expected to Show Rising Inflation in July
Canada's Consumer Price Index (CPI) figures for July are due on Monday at 12:30 GMT, and markets will be closely watching to see if inflation has risen as expected. According to economists, the headline CPI is expected to increase by 2.9% in the year to July, above the Bank of Canada's (BoC) target of 2%, and up from June's 2.8% annual rise.
The BoC kept its interest rate steady at 2.25% last month, but is closely monitoring inflationary pressures, which are expected to remain elevated due to ongoing geopolitical volatility and US tariffs on Canadian goods.
Pablo Piovano, Senior Analyst at FXStreet, notes that USD/CAD has been in a downtrend since late July, and if the CPI data shows a continued decline in inflation, it could lead to further losses for the Canadian Dollar (CAD).