By Giles Coghlan, Chief Currency Analyst at HYCM
The two main scheduled events today are the CAD CPI numbers and the FOMC minutes out later this evening. The BoC has taken a more dovish turn lately as the BoC have highlighted their concerns on the US-China trade war and its repercussions for the Canadian economy. The CPI data out today will be viewed carefully for any hints that the BoC will be coming off the sidelines with a rate cut in December. The data points are expected to be in line with the BoC’s 2% inflation target. The BoC’s preferred measure of inflation is in this order: the Common, Trim, and Median with the main focus on the Common.
For a significant move on CAD look for a major miss on the CPI readings (sub 1.9%) and a corresponding risk off tone. This is the most anticipated event of the week in a quiet data week.