BOC Macklem: Canda interest rates may be high enough

Bank of Canada’s Macklem is speaking and says:

• Canada interest rates may now be restrictive enough.
• Excess demand that made it too easy to raise prices is now gone.
• Reiterates that if high inflation persists, the Bank of Canada is prepared to raise its policy rate further.
• The Canadian economy is approaching balance, we expect it to remain weak for the next few quarters, which means more downward pressure on inflation.
• Inflation in Canada is still too high and progress cutting it is slower than we had hoped.
• Expectations for near-term inflation have been slow to come down and this is a concern
• Long-term inflation and to have remained well-anchored

The USDCAD is dipping back below it 200-day moving average at 1.37382. Earlier today, the price moved sharply higher and tested it 50% midpoint of the November trading range at 1.37634. The high price reached 1.37648 before rotating back to the downside.. They moved to the upside was spurred on by lower oil prices which tends to weaken the Canadian dollar. Oil prices have come off their lower levels. Technically, the price of the USDCAD – in addition to breaking the 200-day moving averages – moved back into a swing area between 1.3734 and 1.3745. On the downside, the 100-hour moving average at 1.3722 is the next target. A move below that level would shift the bias more to the downside/sellers.