Oil prices showed some resilience in a week. This may have contributed to protect CAD from more USD appreciation. In the next week, the USD/CAD pair may slide below the 1.25 level, in the view of economists at ING.
Inflation unlikely to be a game changer for the BoC
“In the week ahead, the focus will be on July’s inflation data in Canada. We don’t think that small deviations from the 3.1% June read (especially if headline inflation stays above 3.0%) will have a material market impact.”
“Despite having fallen short of consensus, the July jobs report showed more gains on the employment side, which are enough in our view to leave the Bank of Canada on track to end its asset purchase programme by the end of the year.”
“USD/CAD could again explore sub-1.2500 levels next week as long as oil prices continue to show some resilience.”
