Canada's Consumer Price Index (CPI) increased by 2.9% compared to the previous year in January, down from a 3.4% increase in December, which is lower than the market's expectation of 3.3%. The easing inflation may prompt the Bank of Canada (BoC) to consider reducing interest rates in the coming months.

Meanwhile, the rebound in oil prices over the past 3 months may bode well for Canada's direct oil exports, as Canada is a major oil exporter to the United States and many other countries worldwide.

Regarding economic data from the United States, stronger-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) have diminished hopes for the Federal Reserve (Fed) to cut interest rates in March. Additionally, there is a 60% chance that the Fed will not reduce interest rates at its May meeting, while there is an 80% chance of at least a 25 bps rate cut in June, according to data from the CME FedWatch Tool.