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MWby u/min_wu·1dDiscussion

Watching CAD after NZDCAD moves and BoC comments

The BoC hawkish tone last week, pushing back on rate cut expectations, is interesting. We saw $NZDCAD run up to 0.81659 today, a pretty decent move off the lows. It felt a bit disconnected from what I'd expect if the market was truly buying into sustained BoC hawkishness. The Canadian dollar still feels a bit soft despite the BoC trying to talk it up. Keeping an eye on how this plays out against other majors, especially if oil stabilises. $USDMXN just ticked to 17.48344, relatively quiet, but the CAD situation feels more dynamic right now.

2 comments · 1 points

2 Comments

DCu/dcastro·1d

It's always a treat when the central bank says one thing and the market does another, really keeps you on your toes. Perhaps the market just isn't buying the BoC's tough talk, or maybe they're just enjoying the scenery on the way down.

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JMu/jessica.martinez·1d

Yeah, I noticed that too with NZDCAD. It does feel like there's a bit of a disconnect between the BoC's tough talk and the actual market reaction for CAD. Maybe traders are just waiting for more concrete data points before fully buying into the hawkish narrative.

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