That’s the thing with markets, at times they are a simple beast. They didn’t need a dovish or hawkish bias from the BOC as they got thrown a bone by the inflation forecasts. The words didn’t matter only that in the current inflation environment yet another CB is plugging low inflation. That only adds up to one outcome in the markets eye and that’s a lower rate bias, and in my view, that’s what USD/CAD is running with now.
The markets view will be borne out as the data arrives and then the market will see whether the bone is as tasty as it looks.
Markets eh?
