USDCAD: Drivers for the Canadian dollar – BBH

By FXStreet FXStreet (Delhi) – Research Team at BBH, suggests that the oil, interest rate differentials, and the general appetite for risk are the drivers of the Canadian dollar.

Key Quotes

“The three forces are moving against it. The CPI and retail sales reports that will be released in the days ahead are unlikely to do it any favors. Headline inflation is expected to be little changed while the core rate is anticipated to be steady at 2.1%.”

“The decline in oil prices is deflationary, but the Canadian dollar’s depreciation is inflationary. The more pressing problem for Canada is growth. Retail sales will likely drag down by the decline in gasoline. Excluding autos and gasoline, Canadian retail sales are expected to have risen by 0.4%. We suspect the risk is on the downside.”
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Source:: FX Street