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Dovish Reaction To Headline CPI Missing Even With Core In Line

CANADA DATA
  • Headline CPI falls by more than expected in Jan from 6.3% to 5.9% Y/Y, with only 2 of 17 analysts looking for a softer reading.
  • Average Trim and Median measures as expected though, at 5.05% Y/Y for a 0.2pt moderation after an upward revised 5.25% Y/Y in Dec for joint highs (led by the median pushed up 0.2pts in Dec).
  • USDCAD climbs 30 pips to 1.3485, 2Y GoC yields slide 8bps for back near unchanged on Friday's close.

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