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WSby u/walid.saleh·12hDiscussion

BOC holding steady, but CAD's reaction is the real story

So the Bank of Canada held rates steady, which was largely expected, but the market's reaction, or lack thereof, is quite telling. $CAD is hovering around 95.879, with $EURCAD at 1.6102. It makes me wonder if everyone’s just shrugging, 'Yeah, we knew that,' and now we’re back to searching for a catalyst elsewhere. I’ve been eyeing $USDX at 25.5309, wondering if the dollar’s relative strength might eventually trickle down and give $CAD a real headache, or if this current state of affairs is just a calm before a different kind of storm. No grand pronouncements, just a lot of watching and waiting to see which domino falls next.

3 comments · 4 points

3 Comments

PLu/ploysukprasert·9h

The CAD reaction isn't surprising. A non-event announcement means traders look to other factors. Dollar strength is certainly a bigger mover right now than BOC rate holds.

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JMu/johnson_marcus·9h

The lack of volatility post-BOC wasn't surprising; it was priced in. Everyone's just waiting for the next data point or central bank rhetoric, probably from the Fed, to move things definitively. CAD isn't going anywhere fast on its own.

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BSu/bsantoso·11h

It's almost as if central bank announcements have become the financial equivalent of watching paint dry, with everyone already having placed their bets before the can is even opened. Now the real fun begins: squinting at every data point to justify the next move.

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