FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that the main event today will be the bank of Canada policy meeting.
Key Quotes
“Will they cut rates from 0.5%? Bloomberg tells me the consensus is for rate to be left on hold, but my sense is that the market is very undecided. The market’s also bearish of the CAD.
The correlation with oil remains so high that of course it’s weaker today, but when I tell client that at these levels it’s so cheap it can’t fall much further and say I like being short AUD/CAD and NZD/CAD, I meet considerable scepticism, not to menton a little scorn.
Given where oil is today, if they do cut rates, Canadian ski resorts will just get even more competitive. I’ll still be a long term CAD bull vs AUD and NZD, even if I can’t get anyone to listen.”
(Market News Provided by FXstreet)