The 20% by devo pips

 

Canada's inflation is moving closer to its 2% target, with some progress being made. Core inflation, which excludes volatile items, has eased significantly, but there are still some price pressures, especially in services and housing. Inflation in Canada is expected to fall to around 2.5% in the latter half of 2024 and then gradually decline further, reaching 2% by the end of 2025.

The Canadian economy is expected to improve in the second half of 2024, with stronger growth in exports and household spending. As borrowing costs decrease, consumer spending should pick up, and inflation pressures are likely to ease. However, wages are still rising, and inflation in services and housing remains high.

For forex traders, these updates suggest that the Canadian dollar (CAD) could weaken as inflation moves closer to the target and economic conditions improve. Traders should monitor inflation trends closely and consider selling CAD if inflation continues to decline and economic growth picks up.

JOIN OUR WHATSAPP CHANNEL

JOIN NOW