- BOC lowers inflation forecasts for 2014 and 2015
- BOC lowers growth outlook for 2014 but raises figures for 2015
- USD/CAD soars above 1.1100 on bearish BOC statement
- NASDAQ closest at its highest levels since 2000
The Bank of Canada (BOC) took the spotlight away from the U.K.’s employment numbers and the MPC’s meeting minutes during the U.S. session. The central bank kept its interest rates at 1.00% but lowered its 2014 and 2015 inflation forecasts on tough retail competition in Canada.
Weakened prospects of a rate hike alone was enough to weaken the Loonie but it was coupled with the BOC saying that it was comfortable with CAD’s 6% drop against USD since October. With Canada’s trade numbers falling in the last two months, a weak currency is welcome for the central bank.
The Loonie bears were all over these developments as they pushed USD/CAD from the 1.0970 area all the way to 1.1110 as of writing. Other CAD pairs also showed weakness with EUR/CAD and CAD/JPY showing at least 150-pip hits on the Loonie while GBP/CAD rocketed by as much as 230 pips. Yowza!
Today’s economic calendar won’t be any lighter for the comdolls. A while ago we saw Australia’s MI inflation expectations come in at 2.3% vs. last month’s 2.1% reading. Then, at 1:45 am GMT we’ll see China’s HSBC flash manufacturing PMI. The report is expected to come in at 50.3 from last month’s 50.5 reading but keep an eye out for any surprises!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!