The USD/CAD pair dropped heavily on Tuesday after official data from Canada showed that inflationary pressures mounted in March, where headline and core CPI rose well above expectations, which ignited speculations that the Bank of Canada will raise interest rates this year, and the BOC might be forced to raise rates more than once to control rising inflation risks.
The USD/CAD pair will probably continue to drop over the upcoming period, although we don’t exclude to witness some upside correctional movements, but the general trend should remain to the downside.
Wednesday 14:00, the U.S. will release the existing home sales index for the month of March, where existing home sales are expected to rise by 2.5% in March to 5.00 million units, compared to 4.88 million units reported back in February, where the housing market is still struggling to recover fully from its worst slump since the Great Depression.
Written by ForexMansion.com