The US tariff exemptions offered temporary support to the dollar, but the broader concerns about credibility and economic weakness continue to weigh. With market correlations crumbling and the confidence of investors shaken, the pressure on the USD can persist in the short term, FX analysts of Danske Bank report.
The Boc prepared for a “safe” rate cut in the midst of commercial uncertainty
“This week will be moved in the CAD FX space, starting with the March Inflation Report on Tuesday and culminating in the key event: the Boc meeting on Wednesday. The minutes of the last meeting of the BOC confirmed to a large extent that the BOC would have paused in March if it were not for the high tariff uncertainty.”
“We do not believe that uncertainty has decreased since then and, therefore, we hope that the BOC will deliver another rate of rates of 25 basic points such as ‘safe’. The markets are more inclined to make the BOC maintain the rates, valuing about the 28% probability of a cut.”
“Keep in mind that the BOC will also publish its quarterly MPR, which should naturally remain focused on tariffs and its collateral effects on the Canadian economy.”
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.
