Bank of Canada Rate Decision and CPI Impact
Markets are bracing for a busy session with key inflation data from the U.S. and a monetary policy update from the Bank of Canada (BoC). The U.S. dollar is trading cautiously ahead of the Consumer Price Index (CPI) report, while oil prices continue to climb. Meanwhile, ECB President Lagarde’s speech and the German bond auction are also in focus as investors seek policy clues.
Key Data Out Today
- 08:45 EUR: ECB President Lagarde speechEUR: 10-Year German Bond Auction
- 12:30 USD: Consumer Price Index (CPI) (YoY) (Feb) – Consensus: 2.9%, Previous: 3%
- 12:30 USD: Core CPI (YoY) (Feb) – Consensus: 3.2%, Previous: 3.3%
- 13:45 CAD: Bank of Canada Interest Rate Decision – Consensus: 2.75%, Previous: 3%
- 13:45 CAD: Bank of Canada Monetary Policy Statement14:30 CAD: BoC Press Conference
Commodities
- Crude Oil (WTI): $66.72 per barrel (↑0.71%) – Oil prices are rising on improved risk sentiment, though concerns over global demand remain.
- Brent Crude: $69.98 per barrel (↑0.60%) – Gains are capped by uncertainty around future OPEC+ supply decisions.
- Gold: $2,919.82 per troy ounce (↑0.16%) – Investors continue to hedge against inflation risks ahead of U.S. CPI data.
- Silver: $33.05 per troy ounce (↑0.61%) – Strength in precious metals continues amid dollar weakness.
Currency Movements
EUR/USD (1.0923, ↑0.04%)
The euro is steady ahead of Lagarde’s speech and inflation data, with markets watching ECB policy signals.
GBP/USD (1.2942, ↓0.06%)
The pound remains under pressure as traders assess upcoming U.S. CPI data.
AUD/USD (0.6296, ↓0.03%)
The Aussie dollar is stable, finding support from higher commodity prices.
NZD/USD (0.5718, ↑0.14%)
The kiwi is slightly firmer, supported by risk-on sentiment.
USD/JPY (148.49, ↑0.48%)
The yen weakens as U.S. bond yields tick higher ahead of inflation data.
USD/CNY (7.2447, ↑0.25%)
The yuan slips as concerns over trade and economic growth persist.
USD/CHF (0.8828, ↑0.01%)
The Swiss franc remains little changed, awaiting further market direction.
USD/CAD (1.4437, ↑0.01%)
The Canadian dollar is stable ahead of the BoC rate decision.
USD/MXN (20.2302, ↓0.18%)
The peso gains as emerging markets see modest inflows.
USD/INR (87.2280, ↑0.10%)
The rupee weakens slightly ahead of key U.S. data releases.
Market Outlook
Today’s U.S. CPI data will be pivotal in shaping Federal Reserve rate expectations. A hotter-than-expected reading could reignite concerns over prolonged higher rates, while a softer print may support risk assets. Meanwhile, the Bank of Canada’s policy decision and press conference will be key for CAD traders, with markets expecting a potential rate cut signal. Investors should brace for heightened volatility as central bank policies remain in focus.
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