Adam (and Greg) was (were) all over the appearances from Bank of Canada Governor Poloz today:
- BOC's Poloz: 'Financial markets understood our message' from May
- USDCAD swings lower and back higher on Poloz comments.
- Poloz Q&A: Canada always has its head in the oven and it's feet in the freezer
- More Poloz to come, press conference coming up
- Poloz: Our underlying narrative appears to be correct
This now coming in, from TD (bolding mine):
- Poloz noted that markets were correct in their interpretation of the May policy statement but denied it met the threshold of explicit forward guidance
- Poloz also flagged steel and aluminum tariffs in the speech which lent a dovish tilt
- However, the Governor was more optimistic in his press conference where downplayed the volatility of recent data and noted that business investment has been "robust" despite NAFTA uncertainty as firms have learned to "get on with it."
- Poloz also stated the Bank does not conduct policy on speculation, suggesting rhetoric alone is not enough to derail a July rate hike.
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Note those bolded bits. Poloz was initially read as dovish in his speech (he was) …. but his later comments were not nearly so dovish at all.
CAD fell, then rose.
Thanks for the volatility Mr. P!
Invisible DJ decks
