Forex News: Bank of Canada Core CPI Falls To 2+ Year Low, Raises Risk of March Rate Cut

Fundamental Headlines

•    USDJPY – Japanese Tokyo Department Store Sales fell 1.6%, for the second straight month, pulling down countrywide sales 2.1%. Japanese consumers – whose confidence is at a six year low- tighten up their wallets and went without non-essential items. Categories like electronics- negative 9.3% after increasing 11.8% the prior month- and women’s clothing saw the biggest reductions. The Japanese economy is continuing to show signs of slowing, which will make it difficult for the BoJ to raise rates anytime soon. For more news and resources, visit the new Japanese Yen Currency Room.
•    USDCAD – Canadian inflation eased in line with expectations in January, as the year over year headline CPI reading slowed to 2.2 percent, while the BoC’s core measure decreased to 1.4 percent from 1.5 percent, the lowest since July 2005 and below the bank's 2 percent target. Declining prices in clothing, and recreation offset increases in food and energy. The lower inflation reading should give the BoC room to cut rates at their next meeting in March. which may become a reality if credit and financial market conditions deteriorate further. Will the BoC lower rates. Discuss the topic and your trade ideas in the USD/CAD Forum.

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