More from BOCs Macklem:
- Part of the February CPI release was expected.
- Still expecting March CPI to be around 2.5%.
- February data has fundamentally changed our view.
- Expect shelter inflation to come down gradually.
- Not really seeing evidence yet that consumer prices are being affected by tariffs
- We’ve demonstrated we can use our instruments to control inflation.
- There are a range of possible outcomes and I don’t think anyone in the governing Council can have a very high conviction about what the most likely outcome is.
- Once uncertainty is over, we will move back more to a single projection for the Canadian economy.
- As the things become clearer, that could affect our policy decisions and what we decide to do.
- We are going to be proceeding carefully with any further changes to our policy interest rate.
The USDCAD is back below its 100 hour moving average of 1.43260. Support is at the 61.8% retracement of the move up from the February low at 1.4299 (call 1.4300). A swing area between 1.4268 and 1.42789 (low of Red Box). On Tuesday, the low price bottom near the 1.4268 level.
- Was not trying to convey the message that there is higher chance of a unscheduled rate announcement.
- If we were to prepare a monitored pulse report today, I don’t think it would have a single central projection.
- Says April MPR could have a range of outcomes
This article was written by Greg Michalowski at www.forexlive.com.