January inflation numbers due at the bottom of the hour
The Bank of Canada faces a bit of a conundrum. The numbers have been improving but they're skeptical and unsure of the trade landscape.
Their general bias is neutral with a dovish lean but that could flip to something more hawkish if January CPI is strong. The consensus is for a 0.4% m/m climb after a 0.2% decline in December. In year-over-year terms, that's still a modest +1.6%.
The BOC recently rolled out three core measure of inflation called CPI common, CPI median and CPI trim so we'll look for signals there as well.
