CANADA OCT CPI 2.0% YOY IN LINE W/ FORECASTS, PRIOR 1.6%

CORRECTED-MNI: Gas Base Effect Pulls Canada CPI Back Up To 2%

MNI BRIEF: China To Enhance Policy Support In 2025: NDRC

MNI CBRT WATCH: Rates To Hold As Inflation Forecast Raised

MNI NBH WATCH: Rates Held At 6.5% As Expected

MNI BRIEF: NDRC Considering Trade-in Scheme Next Steps

MNI: US REDBOOK: NOV STORE SALES +4.9% V YR AGO MO

MNI: US OCT HOUSING STARTS 1.311M; PERMITS 1.416M

MNI: CANADA OCT CPI INFLATION +0.4% M/M, +2.0% YY

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CANADA: BOC Close Call Leaves CAD in Short-Term Focus

CANADA
CanadaBulletMarketsFixed Income BulletsForeign Exchange BulletsNorth America
  • External factors have recently seen Bank of Canada market pricing shift moderately in favour of reverting to a 25bp cut rather than a second 50bp cut on December 11. However, given it’s still close to a 50/50 decision, the bar appears low for a market surprise on today’s release of Canada CPI. The ongoing strength of the US dollar in the aftermath of the US election and the relative weakness of the Euro will keep close market attention on both USDCAD and EURCAD following the data.
  • Higher-than-expected data and an accompanied hawkish repricing may provide further impetus for EURCAD (shown below) to have a deeper correction lower. With headlines surrounding Russia and Ukraine thrusting European geopolitical uncertainty back into the spotlight this morning, EURCAD may be particularly vulnerable to a more protracted move lower for the single currency.
  • Full piece here: FX Market Analysis - CAD 19-11.pdf
146 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • External factors have recently seen Bank of Canada market pricing shift moderately in favour of reverting to a 25bp cut rather than a second 50bp cut on December 11. However, given it’s still close to a 50/50 decision, the bar appears low for a market surprise on today’s release of Canada CPI. The ongoing strength of the US dollar in the aftermath of the US election and the relative weakness of the Euro will keep close market attention on both USDCAD and EURCAD following the data.
  • Higher-than-expected data and an accompanied hawkish repricing may provide further impetus for EURCAD (shown below) to have a deeper correction lower. With headlines surrounding Russia and Ukraine thrusting European geopolitical uncertainty back into the spotlight this morning, EURCAD may be particularly vulnerable to a more protracted move lower for the single currency.
  • Full piece here: FX Market Analysis - CAD 19-11.pdf