16 Jul 2014
BoC announcement and press conference in the spotlight - TD Securities
FXStreet (Łódź) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Secrities expect the BoC to maintain its cautious tone in today's interes rate announcement, in spite of the recent uptick in inflation.
Key quotes
"This presents asymmetric risks to the market reaction upon the release of manufacturing sales."
"If this indicator comes out above consensus as we expect, this should present a good opportunity to buy USD ahead of the Bank, so we would expect to see support for funds in any tentative dips before 10.00ET."
"Contrarily, a weaker than expected reckoning would see a larger move higher, albeit still of a moderate magnitude, as the market will be awaiting for the release of the BoC statement and the MPR in advance of Governor Poloz's press conference."
"Changes in verbiage in the statement and updates to both inflation and economic growth projections in the MPR will be monitored closely, as they will guide expectations as to what message we will hear from Mr. Poloz."
"In the less likely case that Mr. Poloz were to disappoint market expectations by striking a less neutral, more optimistic chord, USD/CAD should find support in the mid 1.06 area."
Key quotes
"This presents asymmetric risks to the market reaction upon the release of manufacturing sales."
"If this indicator comes out above consensus as we expect, this should present a good opportunity to buy USD ahead of the Bank, so we would expect to see support for funds in any tentative dips before 10.00ET."
"Contrarily, a weaker than expected reckoning would see a larger move higher, albeit still of a moderate magnitude, as the market will be awaiting for the release of the BoC statement and the MPR in advance of Governor Poloz's press conference."
"Changes in verbiage in the statement and updates to both inflation and economic growth projections in the MPR will be monitored closely, as they will guide expectations as to what message we will hear from Mr. Poloz."
"In the less likely case that Mr. Poloz were to disappoint market expectations by striking a less neutral, more optimistic chord, USD/CAD should find support in the mid 1.06 area."