Comments from the BOC head

  •  There is no predetermined path for interest rates
  • BOC will not be mechanical on rates and will proceed cautiously

I needn’t write the rest (I will do for good order) but these headlines have down the damage to the CAD. USDCAD has jumped to a high of 1.2431.

  • BOC could still be surprised in either direction and we will continue to feel our way cautiously as we get closer to home
  • Factors holding inflation down should dissipate in the months ahead
  • Recent CAD moves could affect the timing
  • Currency moves can affect the inflation outlook depending on the cause, size and persistence

Not a proper jawbone on the currency but it’s a mention.

There’s some half decent resistance around the 1.2415/20 area so if we can’t break above, we’ll head back down.

USDCAD daily chart 27 09 2017

Ryan Littlestone

Pin It on Pinterest