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Firmer Equities See USDCAD Pare Post-BoC Climb

  • 2Y GoC yields trade close to session lows, having more than reversed a paring of the post-decision rally at the start of the press conference to now sit 8.5bps lower than just prior to the decision.
  • However, with its continued sensitivity to risk sentiment, e-mini S&P pushing session highs helps USDCAD unwind some of the post-decision increase, now up ~50 pips since just before the decision at 1.339 (+0.15%).
  • That sees CAD outperform NZD after CPI undershot RBNZ expectations in Q4, despite a dovish BoC putting a reasonable bar to further hikes in the press conference when talking about needing to see an accumulation of evidence that inflation is easing as projected.

Source: Bloomberg

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