– CAD vulnerable to softer CPI today
Yesterday, the configuration of the market could be characterised as risk-off and EUR negative. Today it is still slightly EUR bearish but risk-sentiment has recovered. This has been driven by a combination of weaker LTRO repayment figures (EURve) and stronger IFO and housing data from Germany and China respectively. For today, we suspect that the EUR could remain under the cosh ahead of the results of Monday’s Italian election. CAD could be somewhat vulnerable to softer prints on inflation and retail sales today. On the other hand, AUD should hold up better following somewhat more optimistic comments from RBA Governor Stevens which has seen odds of a rate cut for March 5 meeting marginally decline.
Click here to read the full report: FX Daily
BNP Paribas