Canada BoC Consumer Price Index Core (YoY) fell from previous 2.9% to 2.8% in December

💡 DMK Insight

The slight dip in Canada’s Core CPI from 2.9% to 2.8% might seem minor, but here’s why it matters: For traders, this could signal a shift in monetary policy sentiment, especially as the Bank of Canada navigates inflation targets. A lower CPI could reduce pressure on the BoC to raise interest rates, which often strengthens the Canadian dollar (CAD) against other currencies. If traders expect a dovish stance, it might lead to a weaker CAD, impacting forex pairs like CAD/USD. Moreover, with ADA currently at $0.37, any CAD weakness could influence crypto markets, particularly if Canadian investors shift capital into digital assets as a hedge. Watch for ADA’s response to broader market sentiment, especially if CAD volatility increases. Key levels to monitor include the $0.35 support and $0.40 resistance for ADA, as these could dictate short-term trading strategies. Keep an eye on upcoming economic data releases that might further influence the BoC’s outlook and, by extension, the CAD and crypto markets.