USD/CAD has second thoughts ahead of Poloz press conference

USD/CAD has second thoughts ahead of Poloz press conference

USD/CAD back below 1.2600

USD/CAD jumped nearly a full cent on the Bank of Canada decision to leave interest rates unchanged. No move was mostly expected but OIS pricing showed about a 20% chance of a move so the kneejerk higher was understandable.

The bigger question is what comes next. There were some mixed messages from the BOC. The statement was generally upbeat and talked about better global growth. It also made a specific mention of progress towards higher inflation in the final paragraph, which is a small signal.

Still, the market generally wanted a strong signal about the May meeting. Instead, it will be a game of wait-and-see on the data unless Poloz and Wilkins deliver a dose of clarity in the press conference.

It starts at 11:15 am ET (1515 GMT).

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