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Economists at MUFG Bank analyze CAD outlook ahead of the Canada CPI data for June.
While some economic data has shown resilience, we suspect the BoC is being overly optimistic and see risks skewed to the data coming in weaker than expected, which should limit the scope for CAD to outperform other G10 currencies as the US Dollar weakens further.
For now, with the momentum against the US Dollar there seems a greater risk of further near-term declines in USD/CAD.
Perhaps just as important as the CPI print is whether the increased expectations of a soft landing can persist. That expectation is equity market supportive and is a positive backdrop for CAD for now.
See – Canada CPI Preview: Forecasts from five major banks, better inflation, but not yet good enough
风险提示:本文所述仅代表作者个人观点,不代表 Followme 的官方立场。Followme 不对内容的准确性、完整性或可靠性作出任何保证,对于基于该内容所采取的任何行为,不承担任何责任,除非另有书面明确说明。
