| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 10:00 | Eurozone | ZEW Economic Sentiment | March | 24.2 | 39.6 | 39.8 |
| 10:00 | Germany | ZEW Survey - Economic Sentiment | March | 26 | 48.1 | 51.6 |
CAD depreciated against most of its major rivals in the European session on Tuesday, as investors awaited crucial Canada’s inflation report for February later in the day.
Statistics Canada will release the February consumer price index (CPI) figures at 12:30 GMT. Economists expect they will show the headline CPI increased to 2.2% YoY last month from 1.9% YoY in January, and the trimmed-mean CPI - the preferred measure of core inflation of the Bank of Canada (BoC) - rose to 2.8% YoY from 2.7% YoY in the previous month.
Should the core inflation measure rise more than expected in the month before U.S. tariffs on steel and aluminum take effect, markets might scale back their expectations of the BoC’s interest rate cuts in 2025. Currently, they forecast two more rate reductions to come by the end of the year.
In last week’s policy statements, the Canadian central bank acknowledged that the “monetary policy cannot offset the impacts of a trade war” but pledged to “ensure that higher prices do not lead to ongoing inflation”.