Canada is set to release its Consumer Price Index (CPI) data for July, with forecasts suggesting that both the CPI and core CPI, which excludes volatile food and energy prices, are likely to continue trending downward.

These economic figures are being closely watched, as inflation data could influence future interest rate cuts and will certainly impact the Canadian dollar.

Analysts predict that price pressures in Canada will continue to decline in August, although they remain above the Bank of Canada's target. However, persistent deflationary pressures are expected to lead the Bank of Canada to maintain an accommodative interest rate stance in its next meeting.

Source: Fxstreet