Through what was certainly one of the most eventful Bank of Canada announcements ever in Ottawa, the removal of the reference to a “neutral bias” from the statement helped the loonie gain ground. Although the earlier news that Retail Sales were weaker than expected had drained value from the currency, a potentially more positive outlook from Governor Stephen Poloz helped quickly reverse the trend. However, given the clear indications from the BoC that it does not intend to raise rates before the Fed and the momentum the greenback currently has, it is unlikely that the loonie will rise substantially.
This morning, markets are relatively stable, failing to get overly excited about the announced rise in the HSBC China Manufacturing PMI. Meanwhile in Europe, the ECB’s bond buyback program appears to be underway, with estimates that it has purchased some 800 million euros in issues since the beginning of the week.
In terms of indicators, the usual weekly Initial Jobless Claims figures will be released in the U.S. at 8:30 this morning. Have a great day. Stéphane Goulet
Range of the day: 1.1170 – 1.1310 Range of the next 5 days: 1.1100 – 1.1400
