Canadian Dollar Fundamental Forecast: Bullish
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The Canadian Dollar ended flat against the US Dollar this past week. That said, the Loonie spent the last few days mounting a comeback against the Greenback. On Friday, layoffs at Google helped trigger a rally in the tech sector, generally improving risk appetite with it. That dented the demand for havens, such as the US Dollar, sending USD/CAD lower to where it started at the beginning of the week.
Canadian inflation data also crossed the wires last week. Headline CPI clocked in at 6.3% y/y in December versus the 6.4% estimate, dipping from 6.8% prior. This is as the trim and median core rates surprised slightly higher. The latter two are more closely watched by the Bank of Canada. Speaking of which, all eyes are on the BoC this coming week.
On Wednesday, the central bank is expected to raise rates…
