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BoC’s Macklem and Rogers To Appear Late On

CANADA
  • Upcoming FOMC commentary will clearly set the tone for Canadian assets but we still hear from BoC’s Macklem and Rogers later on in front of the Senate with text released at 1615ET.
  • Since the BoC’s rate decision on Apr 10, core CPI metrics again came in softer than expected before downward surprises for retail sales and monthly GDP.
  • Macklem noted in his discussion with Powell shortly after that release on Apr 16 that "Importantly, measures of core inflation did tick down again and that does suggest underlying inflationary pressures are continuing to ease. We continue to be moving in the right direction."
  • Today’s remarks could help flesh this stance out but there will still be the April reports for labour (May 10) and CPI (May 21) to come before the Jun 5 decision. BoC-dated OIS has circa 13bp of cuts for June with a first cut fully priced for July vs the US where a first cut is seen in Dec.
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  • Upcoming FOMC commentary will clearly set the tone for Canadian assets but we still hear from BoC’s Macklem and Rogers later on in front of the Senate with text released at 1615ET.
  • Since the BoC’s rate decision on Apr 10, core CPI metrics again came in softer than expected before downward surprises for retail sales and monthly GDP.
  • Macklem noted in his discussion with Powell shortly after that release on Apr 16 that "Importantly, measures of core inflation did tick down again and that does suggest underlying inflationary pressures are continuing to ease. We continue to be moving in the right direction."
  • Today’s remarks could help flesh this stance out but there will still be the April reports for labour (May 10) and CPI (May 21) to come before the Jun 5 decision. BoC-dated OIS has circa 13bp of cuts for June with a first cut fully priced for July vs the US where a first cut is seen in Dec.