- Q2 is looking pretty solid.
- Will be assessing how sustainable the pickup is.
- We do think it is sustainable.
- If oil prices do once again rise, and feed into inflation, he expects to need consecutive rate hikes to keep inflation under control.
- There are questions about how sustainable the recent pickup and growth is.
- Says we are going to take our decisions one at a time.
- Canadian dollar weakness has not been a major factor in rate decisions
- There has been somewhat widening in yields between the US and Canada leading to a weakness in the Canadian dollar.
The USDCAD remains within it trading range for the day. The high for the day was at 1.4077. The low is at 1.4040. The current price is trading at 1.4051. Looking at the hourly chart, the next target on the downside on a new low would have traders looking toward 1.4015 – 1.4021 near the high prices from June 11 and June 12. Below that level and traders would look toward the 38.2% retracement of the move up from the May 1 low. That level comes in at 1.39812.
This article was written by Greg Michalowski at investinglive.com.