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4 Dec 2014
USD/CAD: BoC firmly in neutral - FXStreet
FXStreet (Guatemala) - Analysts at TD Securities explained that the Bank of Canada maintained a broadly neutral policy stance at yesterday’s meeting, as expected.
Key Quotes:
“The fact that policy makers looked through the recent bounce in jobs, downplayed the pick-up in inflation, and focused on the depressing impact of oil easily offset expressed hopes for a broadening recovery on stronger US growth, and a weaker CAD and ongoing concerns over elevated household debt levels, as far as policy risks are concerned”.
“Governor Poloz added little more colour in comments later last night, noting that GDP was higher than expected while expressing confidence that housing imbalances would ease as income growth improved”.
“We would argue that the drop in USD/CAD upon the release of the BoC statement could well have been a reflection of the disappointing ADP and ISM employment sub-component in the US”.
“Headwinds from the energy sector continue to blow.”
“Look for firm support for USD/CAD on dips to the low 1.13s.”
“CAD cross flows still risk weighing on USD/CAD in the near-term but we continue to view USD/CAD as undervalued.”
Key Quotes:
“The fact that policy makers looked through the recent bounce in jobs, downplayed the pick-up in inflation, and focused on the depressing impact of oil easily offset expressed hopes for a broadening recovery on stronger US growth, and a weaker CAD and ongoing concerns over elevated household debt levels, as far as policy risks are concerned”.
“Governor Poloz added little more colour in comments later last night, noting that GDP was higher than expected while expressing confidence that housing imbalances would ease as income growth improved”.
“We would argue that the drop in USD/CAD upon the release of the BoC statement could well have been a reflection of the disappointing ADP and ISM employment sub-component in the US”.
“Headwinds from the energy sector continue to blow.”
“Look for firm support for USD/CAD on dips to the low 1.13s.”
“CAD cross flows still risk weighing on USD/CAD in the near-term but we continue to view USD/CAD as undervalued.”