CAD: All eyes on Governor Poloz as markets await BoC policy clarity - ING

All eyes will be on Governor Poloz today as markets seek clarity over what the BoC chief means by “rate cuts have done their job”, suggests analysis team at ING.

Key quotes

“The timing of hawkish G10 central bank surprises in June has been rather odd to the say the least given that macro conditions have weakened (not strengthened) over the period. Canada epitomises this – positive data surprises have become scarcer since mid-April, while weaker oil prices and a drop in rig counts are not exactly supportive short-term factors. All eyes will be on Governor Poloz today (speaking on an ECB Panel at 14:30 BST) as markets seek clarity over what the BoC chief means by “rate cuts have done their job”; we do not subscribe to the view taken by markets that a near-term rate hike is likely and think the risks are for short-term rates to partly reverse their move higher (= CAD downside).”