Bank of Canada Stayed on the Sidelines for Second Straight Meeting
The BoC kept rates at 5% for second straight month, helped by the recent moderation in inflation and USD/CAD reacted higher, but policymakers remain concerned around slow progress
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The BoC kept rates at 5% for second straight month, helped by the recent moderation in inflation and USD/CAD reacted higher, but policymakers remain concerned around slow progress
After briefly moving above 5% the US 10-year yield has retreated and is currently yielding 4.81%. Technically, there is a divergence between the 10-year yield and its RSI. This suggests that momentum may be slowing and that the yield correction may extend.
The pair starts an event-packed week in a cautious mood, as markets gear up for Thursday’s pivotal rate decision by the European Central Bank and Friday’s US PCE inflation update
The pair extended this week’s gains after the accounts of the last policy decision by the Australian central bank had a hawkish tilt, but a slew of US data looms
There has been a dovish shift in recent Fed commentary, as officials worry about rising US bond yields, which has allowed the pair to rebound from its 2023 lows
The USDOLLAR is considered the current haven of choice. Given the conflict in the middle east, FXCM’s USDOLLAR basket is bid.
The Non-Farm Employment Change (NFP) came in close to double what was forecast by the market, printing at 336K (vs. 171K expected). In response the US 10-year real rate jumped 4.47% to reach a high of 2.57%, its highest level since December 2008.
The Reserve Bank on New Zealand kept rates unchanged for second straight meeting today, in a decision that had a dovish tilt and the pair slides as a result
The pair breached 150.00 on Tuesday and set new 2023 highs after strong US jobs data, with the ensuing sharp fall causing speculation as to whether Japanese authorities stepped in
The pair dropped to new 2023 lows, after the Reserve Bank of Australia kept rates at 4.1% for fourth straight meeting on Tuesday, in the first decision under its new governor
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