Post #15467

BoC Signals Weak Growth, No Urgency to Hike USD/CAD chugged higher after the BoC rate decision and Governor Macklem’s follow-up remarks. While the central bank kept rates steady, the tone was cautious. The statement flagged weak Q4 GDP expectations and only modest labor market improvements, while underlying inflation remains stuck around 2.5% — giving no urgency to hike. Macklem acknowledged Canada’s resilience but pointed to temporary inflation pressure from base effects, not demand-driven forces. Markets focused on the growth warning and limited inflation risk — sending CAD lower and pushing USD/CAD through intraday resistance. Momentum favors the bulls unless Fed commentary later today flips USD flows. - Alan