Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    BoC Preview: Three scenarios and their implications for USD/CAD – TDS

    Source Fxstreet
    January 24, 2024 08:49

    Economists at TD Securities discuss the Bank of Canada (BoC) Interest Rate Decision and its implications for the USD/CAD pair.

    Base Case: Mildly Hawkish (70%)

    The BoC leaves overnight rate at 5.00% and notes concern about persistent price pressures despite more evidence of waning demand. Modest downgrades to GDP/CPI in Jan MPR, with latter driven by energy prices, as unchanged forward guidance keeps the (empty) threat of rate hikes on the table going forward. USD/CAD -0.10%.

    Dovish: (25%)

    Bank leaves overnight rate at 5.00% but lays some early groundwork for rate cuts with dovish tweaks to forward guidance by dropping the reference to further hikes. Statement also cites concern around underlying prices/wage pressures despite weaker growth backdrop, while revised guidance introduces some caveats to the timeline for cuts. USD/CAD +0.30%.

    Extremely Dovish (5%)

    The BoC leaves overnight rate at 5.00% but throws caution to the wind by dropping threat of hikes and leaving guidance open-ended. Statement notes that headwinds to activity have increased and that inflation pressures have subsided outside of shelter component. MPR revises GDP/CPI growth lower over 2023/24, projects flat print on Q4 GDP. USD/CAD +0.70%.

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    BoE's Broadbent: Wage growth and services inflation twice the rate consistent with sustainable CPIWhile testifying before the UK Treasury Select Committee on Tuesday, Bank of England (BoE) Deputy Governor Ben Broadbent noted that wage growth and services inflation are twice the rate consistent with a sustainable CPI inflation.
    Source  Fxstreet
    While testifying before the UK Treasury Select Committee on Tuesday, Bank of England (BoE) Deputy Governor Ben Broadbent noted that wage growth and services inflation are twice the rate consistent with a sustainable CPI inflation.
    placeholder
    BoJ Ueda: Will consider policy move when inflation target conditions metBoJ Ueda: Will consider policy move when inflation target conditions met developing story ,...
    Source  Fxstreet
    BoJ Ueda: Will consider policy move when inflation target conditions met developing story ,...
    placeholder
    Japan Q4 GDP comes in at -0.1% QoQ versus 0.3% expectedJapanese Gross Domestic Product (GDP) for the fourth quarter (Q4) came in at -0.1% QoQ versus 0.3% expected and -0.7% prior, the Cabinet Office showed on Thursday.
    Source  Fxstreet
    Japanese Gross Domestic Product (GDP) for the fourth quarter (Q4) came in at -0.1% QoQ versus 0.3% expected and -0.7% prior, the Cabinet Office showed on Thursday.
    goTop
    quote