OctaFX | OctaFX Forex Broker
Open trading account
Back

BoC: roughly a 40% chance of a cut is priced for April – TDS

USDCAD was down 0.2% to 1.3229 overnight, analysts at TD Securities note that it will be a busy week for Canadian data next week, with the first look at real activity data for December.

Key notes

  • While markets have (rightly) discounted the risk of a BoC cut in March, roughly a 40% chance of a cut is priced for April which leaves room for swings in either direction depending on the evolution of the data.
  • Risk/reward considerations favour steepeners over outright positions in CAD rates.
  • We expect manufacturing sales to decline by 0.1% in December (market: 0.7%) owing to a combination of weaker auto production and lower factory prices.
  • While exports were up 1.9% m/m during the month, the increase was led by raw materials (crude oil, minerals) and exports of manufactured goods were actually lower on the month.
  • Manufacturing volumes should post a mild increase, although we do not expect much of a contribution to industry-level GDP growth.

Coronavirus: Japan infection rate has picked up since Feb. 12

Japan's coronavirus infection rate has picked up since Feb. 12, doubling every four days, according to Jim Bianco, President of Bianco Research. As of
Read more Previous

China considers cautious monetary policy response to virus outbreak - MNI News

China's policymakers have called for a cautious monetary policy response to the coronavirus outbreak. The officials told MNI news that any easing woul
Read more Next
Start livechat