Bank of Canada Senior Deputy Gov. Carolyn Wilkins speaking
Bank of Canada is Wilkins is on the wires saying:
- Canada has avoided secular stagnation, has strong fundamentals including the central banks policy framework
- Canada is well-positioned to secure prosperity and avoid a long period of slow growth if the right steps are taken
- still plenty of uncertainty in the global environment including tensions in the Middle East and coronavirus
- Canada's population still rising due to immigration which offset some of the impact of aging on growth
- Canada's banks are well-capitalized
- in the lead up to policy renewal in 2021 BOC is reviewing its policy framework toolkit and how fiscal monetary and macro prudential policies complement each other
- Canada needs to focus on boosting productivity, investment in technology: could reduce interprovincial trade barriers and adapt new technology's
- lower neutral rate of interest rates means central banks have less room to stimulate the economy by cutting rates; central banks have 200 basis points less room to stimulate in the traditional way
- Canada can navigate a world with low at neutral interest rates. To do so we need the right monetary policy framework and tools in place
The USDCAD has moved lower with traders focusing on the less flexibility for rate reduction perhaps.
Looking at the hourly chart of the USDCAD, the pair has been moving sideways over the last 2 trading days. The high has found resistance against the 1.3303 area (call it 1.3300). The low of the range is at 1.3262. We currently trade in the middle at 1.32803. The price today has traded above and below the upward sloping trend line but traders are still unsure of the next directional move. The moved to the downside on the comments has weekend the technical picture a bit with the price moving back below the trend line coming into today.
