26 Mar 2015
Poloz to signal that policy might remain data-dependent – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, comments that CAD might remain vulnerable into Governor Poloz’s speech.
Key Quotes
“In all likelihood Poloz will signal that policy is set to remain on hold dependent on the tone of economic data.”
“If he repeats the Bank’s concerns over the high level of household debt or the market is likely to be more certain that the BoC will not ease again. However, any warnings about more pressure on investment and earnings from persistently weak oil prices could spark rate cut hopes and undermine the loonie.”
“While the CAD has found some support in recent sessions from the softer USD and from the boost to oil prices on Middle Eastern news, we continue to view the CAD as vulnerable. The year’s low near USD/CAD1.2352 should offer support.”
Key Quotes
“In all likelihood Poloz will signal that policy is set to remain on hold dependent on the tone of economic data.”
“If he repeats the Bank’s concerns over the high level of household debt or the market is likely to be more certain that the BoC will not ease again. However, any warnings about more pressure on investment and earnings from persistently weak oil prices could spark rate cut hopes and undermine the loonie.”
“While the CAD has found some support in recent sessions from the softer USD and from the boost to oil prices on Middle Eastern news, we continue to view the CAD as vulnerable. The year’s low near USD/CAD1.2352 should offer support.”