BoC join RBA and Fed in providing further.....>

FOREX: BoC join RBA and Fed in providing further wave of liquidity

- The Bank of Canada followed the lead of the RBA and Fed yesterday in trimming

rates. Poloz and the board chose an above-consensus 50bps cut, taking rates back

to where they were in mid-2018. CAD sold off in response, but the medium-term

reaction looks rather limited and markets are already pricing in a decent chance

of further action as soon as the next BoC meeting in April. USD/CAD failed to

clear the recent high at C$1.3465 despite the weaker oil price. Equities sit in

positive territory, bouncing off the Tuesday lows, but the S&P remains over 10%

shy of the alltime high printed at end-Feb.

- Elsewhere, GBP cleared the Monday high as the incoming BoE governor Bailey

appeared in front of the Treasury Select Committee and talked down the

possibility of imminent policy action from the Bank. Bailey also talked through

the lower bound for rates at around 0.1%, limiting MPC's room to ease.

- US weekly jobless claims are the data highlight Thursday, followed by final

durable goods and factory orders for January. BoE's Haldane & Carney speak as

well as BoC's Poloz and Fed's Kaplan.