April 16, 2024 12:36 GMT
Another Core CPI Miss Sets The Tone
CANADA
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- Headline CPI was as expected at 2.9% Y/Y but a third consecutive miss for the BoC’s preferred core measures (especially median) sparks a sizeable rally in GoCs.
- June BoC cut pricing has jumped from 13-14bps to 17-18bps for now, a large step back to the ~20bps seen before US CPI strength last week.
- 2Y GoC yields are 8bps lower post-release, with the 2Y Can-US differential sliding 7.5bps to new multi-year lows of -75.5bps.
- USDCAD jumps 35 pips to ~1.382. It moves closer to latest resistance at 1.3855 (Nov 10, 2023) after which lies a key 1.3899 (Nov 1, 2023 high).
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