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CAD Trades in a Narrow Range, Awaits BoC and Poloz Comments
Published February 27, 2017
Canadian US Durable Goods Orders (excluding transportation) decreased to -0.2% in January from 0.50% in December
The Business Climate Indicator for the euro area rose above expectations to 0.82 in February, the highest level since June 2011
GBP is the worst performing G10 currency as the week starts, with more news on another call for a Scottish independence vote as Theresa May readies to trigger Article 50
The Bank of Canada meeting is a highlight this week with the statement likely unchanged despite policy divergence and any headwinds from the currency
Focus will be on the Fed and US politics with several speakers including Yellen and Fischer on Friday and President Trump’s address to congress on Tuesday
Dallas Fed President, Steven Kaplan speaks today at 11:00ET
CPI data last Friday printed above 2%, but on further look included a 7% spike in gas prices due to the new CO2 taxed in Ontario leaving the core CPI rate still at 1.6%, well below the BoC target rate
Oil remains in its recent range, up marginally while gold is down slightly
US Treasury yields aren’t showing the same signs of a generally growing probability that a March Fed rate hike is considered “live”
Chart (1) Odds of a US rate hike March, May and June