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by The Canadian dollar weakened to 1.37 (USD/CAD), drifting away from its five-week highs. This shift came as the US Federal Reserve’s hawkish sentiment boosted the greenback.
USDCAD – Inflation Data Points to BoC Rate Cut
USDCAD – Inflation Data Points to BoC Rate Cut
Bloomberg—Minutes from the Federal Reserve revealed heightened concerns about persistent inflation in the US. If necessary, some FOMC members are prepared for more rate hikes, adding strength to the USD.
In Canada, recent inflation data suggested the Bank of Canada (BoC) may cut its rate next month. April’s headline inflation slowed to 2.7%, the lowest in three years, and the core rate dropped to 1.6%, the lowest since 2021.
Interest rate futures indicate that about half of the market expects a BoC rate cut in June, responding to the recent slowdown in inflation.
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