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By xemarketanalysis February 23, 2018 2:39 pm
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    XE Market Analysis: Canadian CPI Cools Less Than Forecast

    OVERVIEW

    • USD closing the week marginally firmer.
    • GBP higher on positive tone from government strategy meeting.
    • EUR weaker as inflation remained soft last month. 
    • JPY rises despite still weak inflation.

    HIGHLIGHT

    Canadian annual inflation cooled less than expected last month with CPI rising 1.7%, down from 1.9% in December. With core inflation averaging 1.8%, the data was keeping the Bank of Canada on its gradual tightening path. 

    US DOLLAR

    The Dollar is tracking a slightly firmer course again today having lost broad ground yesterday overall. Treasury borrowing costs have ticked lower following Fed member James Bullard's message on the number of Fed rate hikes this year.

    BRITISH POUND

    The Pound is generally higher today after Theresa May and her top ministers agreed on a strategy for future ties with the EU that she will deliver a speech on next week. 

    EURO

    The Euro is weaker today as consumer price inflation remained subdued last month, with headline CPI rising 1.3% year-on-year leaving the ECB still way off its target of close to but below 2%.

    CANADIAN DOLLAR

    The Canadian Dollar has recovered from a 2-month low, supported by inflation data that showed price pressures cooled less than forecast last month (see highlight).

    AUSTRALIAN DOLLAR

    The Australian Dollar is softer on the day and is set to end the week slightly weaker after data showed wage growth remained soft, keeping the RBA on hold. 

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