Just to shed some light on fundamentals as to why CAD losing strength: This month’s BoC policy statement, monetary policy report and quarterly press conference establish a firm neutral stance that will reinforce the recently seen relative insensitivity of CAD rates (and thus the currency) to respond to near-term weakness in the data or downside risks.
Into the recent policy meeting, despite the recent cyclical disappointment in the data, an exogenous shock (the Alberta wildfires) that will drive a second quarter contraction and increased global uncertainty from Brexit, BoC expressed an on-going comfort with the outlook and comfort in its neutral bias.
This comfort stems from some optimism in expectations that the Alberta wildfires were a temporary shock that has already passed, a view that Brexit uncertainties are offset by easier global financial conditions.
On the flip side, let’s not forget BoE’s rate cuts which is very much on the cards in the next monetary that could add further depreciation pressure on sterling.
One should understand despite printing better than expected inflation data in the UK, the pound against almost all majors continued to display softness on today while FX markets waited for the International Monetary Fund (IMF) to slash economic forecasts in the wake of the U.K.’s decision to leave the European Union.


RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200
Denmark Central Bank Intervenes to Support Krone Peg Against Euro
Smartphones are helping filmmakers tell the stories the movie industry overlooks
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures
Vietnam’s population hit the 100 million milestone. Where’s it headed?
USA at 250: the Black American struggle for life, liberty and the pursuit of happiness
JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 



