Canadian Dollar (CAD) net short positions have declined for the second consecutive week, driven by a decline in short positions. Net short Australian Dollar (AUD) positions have declined for the first time in four weeks, driven by an increase in long positions, note Rabobank FX analysts Jane Foley and Molly Schwartz.
The market is pricing in a 25bp cut at the BoC meeting
“Canadian CPI inflation was recorded in line with expectations at -0.4% m/m, leaking to a print y/y of 1.8%. The BoC is now equally concerned about CPI inflation recording above or below 2.0% target, and the market is pricing in a 25bp cut in the BoC’s January 29 rate decision.”
“The RBA has been one of the most hawkish banks in this current rate cycle, and the market is now pricing in 77% of a 25bp cut at the next RBA meeting on February 18. The inflation data from the CPI for the fourth quarter will be published on January 29.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
