Inflation data is unlikely to have a significant impact on the Canadian dollar.

On April 15, Francesco Pesole, an analyst at ING, said in a report that Canadian inflation data is expected to rise, which may fuel expectations that the Bank of Canada will pause interest rate cuts on Wednesday, but the Canadian dollar may not react much. USDCAD remains driven by global equity markets and a crisis of confidence in the US dollar, trading at a 2% discount to its short-term fair value. This is fully in line with the exceptional risk premium that has emerged in the US dollar as a result of the recent turmoil in the US market. ING expects it to remain below 1.40 in the near term.