Macklem’s comments from BOC in the Globe and Mail article
- Inflation will be around 3% in the future
- I was surprised by the continued strength of demand in the economy and the persistence of underlying inflationary pressures
- Labor markets have softened slightly but remain very tight
- Our projections are for inflation to hover around 3% for the next year and then gradually return to the 2% target.
- We need to see a better balance in the labor market and we want to see moderate wage growth
Despite the more hawkish bias, USDCAD is trading to a new session high. The price moved above the 100 hourly moving average at 1.31937. Its 200-hour moving average looms above 1.3242. Also, the price is above the 38.2% retracement level of the movement, down from the high that it had recorded last week. This level comes at 1.31937.
For an updated view of the arts as we approach lockdown and enter a new trading week, click the video below.