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Asian Open: Eye-watering CPI data for Canada raises odds of a 75-100 bps hike
Canada’s inflation metrics rise across the board and beat estimates by a wide enough margin to increase the odds of some serious hiking by the BOC in June.
A complete guide to the Bank of Canada and interest rates
As with any central bank, when the Bank of Canada (BOC) changes interest rates, it can have a knock-on effect to stocks, indices and currencies. Find out everything you need to know about the BOC and how it’s decisions impact financial markets.
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Also a good jobs report for Canada
Last Friday was also a good surprise on the jobs front for Canada as 289,600 jobs were added in May.
BoC keeps rate unchanged
The Bank of Canada has kept its benchmark rate unchanged at 0.25% as expected.
[Video] USD/CAD: Q1 GDP fell by 8.2%
Official data showed that Canada's first quarter annualized GDP contracted 8.2% on quarter (vs -10.0% expected).
[Video] USD/CAD: Significant stimulus will be needed
BoC governor Poloz said "the economy will need significant monetary stimulus in the rebuilding stage".
[Video] USD/CAD: Inflation on the downside
Canada CPI fell 0.2% on year in April (vs -0.1% expected).
Triple Whammy for USD/CAD Tomorrow
Three big events, three big chances for volatility in USD/CAD tomorrow.
BoC Slashes Rates to 0.25%
The market seems to have taken the rate cut as “catching up” to other central banks.
What mattered last week and a preview of the week ahead
What mattered last week: An extreme week of volatility as U.S. equity market fell ~15% as the spread of Covid-19 continued. The impact of Covid-19 via border shutdowns, social distancing measures as well as the obvious impact on health impact presents a huge challenge and likely to result in a recession in several countries. Central banks and governments responded by slashing interest rates, resuming/starting Quantitative Easing (QE) programs and boosting/announcing fiscal stimulus packages.
Canada Ready with Loaded Double Barrels
With the ammo the Bank of Canada still has left, usd/cad can run up to 1.4682.
CAD/JPY: “Ground Zero” for Coronavirus and the Oil War
The value of the entire Canadian economy has fallen by more than 10% against Japan’s in a little over two weeks
- Weaker business growth for Europe, fears of an #energycrisis and a surprise German trade deficit drove sentiment swiftly lower. - #EURUSD fell to a 20-year low, #USD up against G10 #FX - #Oil prices fell as much as -14% (closed ~ -9%) - European indices also lower https://t.co/uzrKf4pFQx
Bank of Canada is Up Next
The BoC will need to decide whether they need to take any preemptive measures
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USD/CAD upsurge impeded by recovering oil price
The USD/CAD’s recent upsurge has been halted by a rebounding price of oil today and on profit-taking given that the Loonie has reached a key […]
Crude rally inspires technical breakdown for GBP/CAD
This week’s mixed-bag UK economic data has caused the pound to fall against most major currencies, including the Canadian dollar which has managed to perform […]