USD/CAD – CAD weaker on BoC dovish stance

  • Bank Of Canada Overnight Rate Tgt: Unchanged At 1.75%
  • Will Take Time To Gauge Persistence Of Below-Potential Growth, Inflation Implications
  • Policy Makers To Watch Household Spending, Oil Markets, Global Trade Policy
  • Global Economic Slowdown More Pronounced And Widespread Than Anticipated
  • Trade Tensions, Uncertainty Weighing Heavily On Confidence, Economic Activity
  • Global Prospects Would Be Buoyed By Resolution of Trade Conflicts
  • US-China Trade Talk Progress, China Stimulus Have Improved Market Sentiment
  • Canada’s 4Q Slowdown Was Sharper, More Broad-Based Than Expected
  • Canada Consumer Spending, Housing Market Soft
  • Canada Exports, Investment Came In Below Expectations
  • Canadian Economy In 1H 2019 Appears Weaker Than Anticipated
  • Headline Inflation To Be Slightly Below 2% Through Most Of 2019
  • Bank of Canada Says There Is More Uncertainty About Timing Of Future Rate Increases
  • The Bank of Canada held its key interest rate steady at +1.75% this morning as weaker global and domestic growth prospects led policy makers to express more caution about the pace of future rate increases.

    The central bank said the economic outlook continues “to warrant a policy rate that is below the neutral range, which is currently estimated around 2.5% to 3.5%.”

    The more “dovish” tone has the loonie under pressure, trading down -0.65% at C$1.3453. The ‘techies’ see fresh air towards C$1.3650 if the ‘loonie’ closes down above C$1.3450 on Wednesday.

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    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell