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BRby u/brandonlee·15hDiscussion

Watching CAD after BOC comments on inflation

Saw the Bank of Canada comments on inflation earlier, specifically their slightly more hawkish tone regarding underlying price pressures. It wasn't a full-blown pivot, but the language definitely indicated they're not out of the woods on inflation just yet. This has me thinking about potential CAD strength, or at least a less aggressive rate-cut path than some might have priced in.

My watchlist has $CADJPY and $USDCAD on it. If this hawkish tilt gets reinforced by any upcoming data, particularly CPI numbers later this month, we could see some interesting moves. Right now, $MXNJPY is also on my radar given some of the broader EM currency movements today, currently at 9.25975, but my primary focus is definitely on the CAD pairs for the next week or two based on the BOC. Just curious how others are interpreting this – anyone seeing a clearer path for CAD?

2 comments · 1 points

2 Comments

SIu/siripornrattanakorn·11h

ผมก็เห็นด้วยครับว่าท่าที BOC รอบนี้น่าสนใจ ทำให้คิดเหมือนกันว่า CAD อาจจะไม่ได้อ่อนยวบยาบอย่างที่เคยคิดไว้ ถ้าเงินเฟ้อยังมีแรงกดดันแบบนี้ แสดงว่าโอกาสขึ้นดอกเบี้ยอีกรอบก็ยังมีอยู่ใช่ไหมครับ?

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HYu/haruto_y·9h

That's an interesting take. I'm new to macro analysis, so I'm trying to understand the nuances. Would a less aggressive rate-cut path automatically translate to significant CAD strength if other major central banks are also holding rates steady or cutting slowly?

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