Here’s a quote from the official statement:

USD/CAD now trades at 1.5560, about 40 pips higher than before the release. Will it convincingly break above the resistance line?

After a jump of 0.7% in Core CPI in February, it seemed that prices would be on the rise, making a more speedy rise in prices. But the next month saw a drop in prices (-0.2%) and while there was a small surprise last month – 0.3% rise instead of 0.2%, inflation is still under control.

While Mark Carney’s BOC left the main interest rate, the Overnight Rate, unchanged, it removed its own strains regarding a move on the rates. Here’s a quote from the statement, emphasis mine:

Japan starts the day with Retail Sales. Thy’re predicted to rise by 1.7% (annualized), slower than last month’s 2.3% figure. On the other side of the day, Japan’s Household Spending will probably rise by 1.5% (annually), slower than 1.7% last time.

Flash purchasing managers’ indices pour in during the European morning. France starts with its manufacturing and services figures. Germany follows, and the data for the whole continent is then released. All the figures are expected to edge up slightly. This will promise a choppy morning for EUR/USD. And there’s more in Europe:

Australian action starts the day: Retail Sales made a nice leap last month, rising by 2.2%, but now they’re expected to rise by only 0.7%. In the housing sector, a disappointment came from last month’s dropping Building Approvals. They’re predicted to rise by 0.8% this time. Now for the main dish:

Ben Bernanke shocked the financial markets near the end of last week with a hike of the interbank discount rate. While Federal Reserve officials downplayed this move and announced it after the New York close, it had a strong effect on forex trading. Some currencies took it harder than others.

Things are shaky in the forex market. The dollar weakened during the week but then erased the losses after the ADP Non-Farm Payrolls was good. The major pair, EUR/USD is currently holding steady. Read Casey Stubbs’ latest analysis for this pair.

Prices in Britain have been picking up, and this could strengthen the Pound bulls. CPI has risen to an annual rate of 1.9% last month, and is predicted to jump even higher to 2.6%, still with the government’s target. Core CPI is also expected to edge up to 2.3% and the RPI (Retail Price Index) is expected to reach a level of 2.3% after many negative months.