The january statement was unchanged (1.00%) by policymakers. Last time governor Poloz metioned about weak inflation and the remaining slowdown in exports so that central bank officials were concerned enough to keep a door open for a rate cut later on.
However the latest set of data from canada were mixed. Some decent improvement in job figures stand against slight downturns in manufacturing. Jobs rate increased by 42.9k in march while a fall by 7.2k in february leaded to a jobless rate of 6.9%. The Ivey PMI noted expantion in the manufacturing at least for 3 months but lagged in slower growth in march.
Inflation and retail sales were noting consecutive monthly gains. However building permits and housing starts are well sitting behind.
If you like to trade the BOC interest rate decision and whatever your personal strategy is, you should never rely solely on this report. More important IMHO is the fact that Poloz (like almost every central banker in those days) will possibly try to talk down the Loonie again as it happened before. You see, as simple to understand why a strong currency is negative for exports, as simple you can make up your mind about why central bankers try to do thier best to not let it grow to high. Governor Poloz repeatedly tried to talk down the canadian dollar and for sure this time again wouldnt be a surprise.
I d go with a directional bias after the event if you dont like to trade the news. Wish you all good luck.
However the latest set of data from canada were mixed. Some decent improvement in job figures stand against slight downturns in manufacturing. Jobs rate increased by 42.9k in march while a fall by 7.2k in february leaded to a jobless rate of 6.9%. The Ivey PMI noted expantion in the manufacturing at least for 3 months but lagged in slower growth in march.
Inflation and retail sales were noting consecutive monthly gains. However building permits and housing starts are well sitting behind.
If you like to trade the BOC interest rate decision and whatever your personal strategy is, you should never rely solely on this report. More important IMHO is the fact that Poloz (like almost every central banker in those days) will possibly try to talk down the Loonie again as it happened before. You see, as simple to understand why a strong currency is negative for exports, as simple you can make up your mind about why central bankers try to do thier best to not let it grow to high. Governor Poloz repeatedly tried to talk down the canadian dollar and for sure this time again wouldnt be a surprise.
I d go with a directional bias after the event if you dont like to trade the news. Wish you all good luck.
