CAD flows: CAD marginally softer after CPI

Canadian CPI much as expected though marginally on the soft side with median and trimmed measures slightly below consensus. USD/CAD moves around 20 pips higher on the news, but the data wont change the likelihood of a BoC rate cut on September 4, which was already 100% priced in, so there is little reason to expect a significant move in the CAD. The heavy short CAD positioning evident in the CFTC data also makes it hard to see a significant CAD decline unless we see independent USD strength, and there is nothing on today’s calendar that is likely to trigger that.