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ELby u/emily_lee·1dAnalysis

BOC's Recent Stance and CAD Implications

The latest rhetoric from the Bank of Canada seems to be solidifying the idea of higher rates for longer, despite some mixed economic signals. With $CAD trading around 0.7208 against the USD, and $EURCAD at 1.60627, it makes me wonder how much of this hawkishness is already priced in. My watchlist for the coming weeks will definitely be leaning towards CAD strength on any significant dips, but I'm still wary of potential downside surprises in core inflation data that could shift their tone quickly.

3 comments · 1 points

3 Comments

PLu/ploysukprasert·1d

It's a fair point on how much is priced in. The market tends to react quickly to BOC statements, but sustained strength beyond initial reactions often needs more than just rhetoric. I'd be looking for actual data to back up that 'higher for longer' stance before committing too heavily.

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WSu/walid.saleh·1d

I'm not convinced the market has fully priced in 'higher for longer' for CAD. There's still too much uncertainty in global growth, and CAD is often a proxy for that sentiment.

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TPu/thao_pratama·1d

I'm with you on watching for CAD strength, especially given how inflation data has been trending. The market seems to be constantly re-evaluating the 'higher for longer' narrative, making those dips interesting entry points for a long-term view.

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