Canadian Dollar: BoC hold and guidance shift – TD Securities

TD Securities notes the Bank of Canada (BoC) kept its policy rate at 2.25% and softened guidance by removing references to both rate-cut risks and consecutive hikes. Markets interpreted the statement as mildly dovish, but prior moves limited volatility. The analysts judge a balanced BoC outlook offers little immediate support to the Canadian Dollar (CAD), though improving data could later help USD/CAD move lower.

Balanced BoC seen limiting CAD gains

"The Bank of Canada held rates at 2.25% and watered down its guidance by removing the reference to both the risk of rate cuts and consecutive hikes going forward."

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"Markets took the statement mildly dovishly, but yesterday's move tempered any large swings."

"A balanced BoC outlook does not do much for the CAD."

"Stabilization in Canadian data should allow USD/CAD to eventually retrace below 1.40."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

РЫНОЧНЫЕ КОТИРОВКИ

Название / Символ
График
% Изменение / Цена
GBPUSD
Изменение за 1 д.
-0.66%
1.33401
EURUSD
Изменение за 1 д.
-0.55%
1.11575
USDJPY
Изменение за 1 д.
+0.42%
158.835
AUDUSD
Изменение за 1 д.
-0.54%
0.68751