Morning Commentary & Currency Insights – February 23, 2018

After yesterday’s disappointing retail sales data for Canada rocked the Canadian dollar all eyes are focused on today’s CPI release.  A low inflation print will see the Canadian dollar get hammered against the USD and all crosses as market participants are ready to pounce.  Conversely a high number will see CAD/USDS rate spreads tighten and the Canadian dollar strengthen.  This 8:30 AM EST release will dictate the fortune of the trading day and foreseeable future for the currency.  The wide range remains 1.2200-1.3000 and depending on what happens today look for either extreme to come into focus in coming sessions.