Today’s other economic highlights (2/23/2018)

During the European morning, we get the German Detailed GDP for Q4, Riksbank’s meeting minutes will be released and Eurozone’s final inflation rate is due out for January.

Later on we get Canada’s inflation data for January. The headline CPI rate is forecasted to drop to +1.4% year on year from previous reading of +1.9% yoy, while the core CPI rate’s previous reading was +1.2% yoy. Analysts view the case for the core CPI rate to remain somewhat muted. Should the actual prints meet the forecasts, CAD could weaken against it’s major counterparts.

USD/CAD traded with a slightly bullish mood in the past few days, breaking the 1.2610 resistance level. We see the case for the pair to continue to trade in that manner in the short term as a possible substantial deceleration of the Canadian inflation data could overshadow current fundamental news and financial data. Should the bulls continue to be in the driver’s seat, we could see the pair breaking the 1.2800 resistance level and aim for the 1.2910. On the other hand should the bears have the upper hand, we could see the pair breaking the 1.2610 support line and aim for the 1.2450 support level.