USD/CAD is buying and selling heavy close to 1.3700 after peaking at 1.3800 yesterday, BBH FX analysts report.
BOC lower in query as USD/CAD slips to 1.3700
“Canada’s Might CPI print will likely be a key driver of Financial institution of Canada (BOC) July price lower expectations (1:30pm London). Headline CPI is predicted at 1.7% y/y vs. 1.7% in April whereas core CPI (common of trim and median CPI) is anticipated at 3.0% y/y vs. 3.15% in April.”
“The BOC is worried that ‘underlying inflation may very well be firmer than we thought’ which has dampened expectations for added price cuts. The swaps market is pricing in 39% odds of a 25bps lower on the subsequent July 30 assembly. Over the subsequent 12 months, the swaps market implies a complete of between 25bps and 50bps of easing and the coverage price to backside between 2.25% and a pair of.50%.”
