FX Daily Update

Poloz is now optimisticStephen Poloz, the Governor of the Bank of Canada (BoC), is now forecasting that inflation will be a factor sooner and that economic growth will be more sustained across the country, as he believes that Canada’s economic ills caused by the collapse in crude oil prices will be over much more quickly than initially anticipated. Even if a key rate hike was not mentioned, markets nevertheless reacted very strongly on the news, with Canadian bond yields rising by 5 basis points and the loonie very quickly reaching its highest perch since the end of January, soaring up by almost 300 basis points during the session. This morning, the loonie does not seem to be winded at all, as it has continued to climb by 50 basis points against the USD in the past few hours.Today will be an off-day for economic indicators in Canada, in order to allow us to fully appreciate the Habs’ great win last night. South of the border, we are awaiting Housing Starts and Initial Jobless Claims data this morning.

Economic Data

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