[B]Intra-Day Market Moving New and Views USD/CAD
17 Sep 2014 USD/CAD[/B]
Yesterday the news conference by Bank of Canada, Poloz’s views & statement:
Bank of Canada is neutral on interest rates;
Poloz: asked about dropping neutral bias, says will give all the new data full consideration at next monetary policy report.
What happens next on the economy is still a big question mark for us.
Still a strong case for waiting and seeing.
Housing sector’s bounce back from winter was a little more rigorous than we expected to see.
Base case remains that pieces are in place for gradual reduction in household imbalances.
Could take a year for jobs to return after pickup of exports.
Believes there is some slack in job market not measured by jobless rate, but it is hard to measure.
Estimates about 200,000 youth have withdrawn from workforce, maybe another 100,000 in prime age category are discouraged.
Canadian rates are already higher than U.S. rates.
Earlier news: “the Bank of Canada is not trying to manipulate or even guide markets as to the value of the Canadian dollar” Governor Stephen Poloz said on Tuesday, adding that this gives the bank freedom not to match possible U.S. interest rate hikes.
“floating rates helped Canada ride the tides of the global economy without overheating or unduly slowing.”
“Trying to hold the dollar constant would give us larger fluctuations in unemployment, output and inflation, and in the end would not help us maintain our international competitiveness.”
Many analysts have suggested Poloz, former head of Export Development Canada, prefers a weak currency in order to boost the exports, are needed to take over from households as the driver of growth. The Canadian dollar has fallen 7 percent against the U.S. greenback since he took office.
[B]Wednesday[/B] will see the release of New Zealand’s current account, Bank of England minutes, U.K. average earnings, claimant count unemployment, ILO unemployment, Swiss ZEW investor sentiment, eurozone inflation, U.S. core CPI, CPI, current account, NAHB housing market index, FOMC rate decision and monetary policy statement.