The Canadian dollar was extremely volatile the last few days of the prior week before giving up all gains seen post-FOMC. Although well supported last Friday, the release of inflation data saw the Canadian dollar rapidly sink against the US dollar. The monthly core CPI number came in-line with estimates, although on an annualized basis core consumer price inflation in Canada declined. The BoC's Core CPI slipped from 2.40% to 2.10%, printing just below the BoC's target range. Expectations of another rate cut from the Bank of Canada is diminishing although there is a possibility that further accommodation could be announced during the October meeting should the situation deteriorate. While the USDCAD has been pretty volatility, the GBPCAD and the EURCAD was seen to be coming under pressure. GBPCAD closed Friday's session with a hanging man doji candlestick pattern indicating weakness to the upside.
Asian Markets Open Weak
Daily Analysis - 21/09/2015