USD/CAD stays rangebound between 1.3550 and 1.3800 because the Financial institution of Canada’s newest survey presents little urgency for quick easing. Whereas future gross sales expectations dipped, secure hiring plans and anchored inflation hold markets cautious about near-term price cuts, BBH FX analysts report.
BoC survey alerts pause
“USD/CAD worth motion will probably stick with its multi-week 1.3550-1.3800 vary. The BOC’s Q2 Enterprise Outlook Survey doesn’t provide a clear-cut case for additional easing. Agency’s indicator of future gross sales fell to a one yr low at 6 vs. 13 in Q1 however the outlook for export gross sales improved.”
“In the meantime, a majority of companies plan to maintain employment regular and inflation expectations stay throughout the Financial institution’s goal vary. The swaps curve nonetheless implies lower than 10% odds of a 25bps reduce on the subsequent July 30 assembly and 80% likelihood of a last 25bps reduce within the subsequent 12 months.”
