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.