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The Canadian dollar fluctuated as investors looked elsewhere.
Canadian data won’t appear on the economic calendar until next week.
U.S. PCE inflation remained higher than expected, dampening hopes for a rate cut.
The Canadian dollar (CAD) took a back seat to broader market flows on Friday as investors’ focus remained on fading hopes of a rate cut from the Federal Reserve (Fed). The U.S. personal consumption expenditures (PCE) price index data on Friday was higher than expected, further dampening expectations for an interest rate cut.
Canada won’t release meaningful data until next Tuesday’s gross domestic product (GDP) data, but all eyes will be on the Federal Reserve’s upcoming interest rate decision next Wednesday. The market will also prepare for another non-farm payrolls (NFP) data next week, with investors further focused on signs of a slowdown in the U.S. economy, which could trigger interest rate cuts.
Daily market summary: US PCE inflation remains stubborn
U.S. core PCE price index inflation remained steady in March, hitting expectations at 0.3%.
The year-over-year core PCE price index was also steady at 2.8%, above expectations of 2.6%.
The overall PCE price index for the year ended March rose to an annualized rate of 2.7%, higher than the expected 2.6% and accelerating from the previous 2.5%.
Hopes for a rate cut in September are fading as inflation remains high.
