No sooner do I post that the comments from Bank of Canada Governor Poloz are unrelated to the CAD than he comments on the CAD!
Keeping me on my toes he is!
- CAD is influenced by many things, at any given point in time it's influenced by what is moving the most
- There are periods of gaps when CAD doesn't move with oil prices, but long-term there is a relationship
- CAD become obviously very strong in first half of this year as expectations for rate hikes were being revised up in markets
- Now that economy is moderating from extremely rapid pace has caused CAD to drift down in last few weeks
- If other factors are constant, it will be oil prices that have biggest impact on CAD
- No question those discussions of monetary policy absolutely have an impact of CAD
Headlines via Reuters
General sort of remarks these. Most of immediate impact is this one: Now that economy is moderating from extremely rapid pace has caused CAD to drift down in last few weeks
CAD not doing too much on them.
