Canadian Inflation Cools, Rate Cuts could "Crater" the Dollar

#canadainflation #bankofcanada #canadiandollar

Canada’s inflation rate came in lower than expected at 2.9% in March, putting more pressure on the Bank of Canada to cut interest rates in June. However, Scota Bank is warning that if the Bank cuts too much that could “crater” the Dollar.

Links:

Speech by Senior Deputy Governor Rogers / Discours de la première sous-gouverneure Rogers:

https://www.youtube.com/watch?v=qSWmIifNv7U />
Canadian dollar could 'crater' if Bank of Canada cuts faster and deeper than the Fed, say economists:

https://financialpost.com/news/economy/canadian-dollar-could-crater-if-bank-of-canada-cuts-more-than-fed

Inflation likely rose in March, but not enough to change Bank of Canada's direction:

https://financialpost.com/news/economy/inflation-likely-rose-march-not-enough-to-sway-bank-of-canada

Canadian CPI picked up pace in March:

https://www.fxstreet.com/news/canada-cpi-preview-inflation-expected-to-accelerate-in-march-snapping-two-month-downtrend-202404160800

Annual inflation rate increased to 2.9 per cent in March as gasoline prices rose:

https://ca.finance.yahoo.com/news/statistics-canada-release-march-inflation-080000190.html

‘Odds are leaning to a June move’: How economists and market bets for rate cuts are reacting to today’s inflation data:

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-how-economists-and-market-bets-for-rate-cuts-reacted-to-todays-2/

U.S inflation rises in March, could ‘undermine’ Fed’s confidence for rate cuts:

https://globalnews.ca/news/10413986/us-inflation-march-2024-interest-rates/

Canadian Interest Rate Expectations:

https://www.m-x.ca/en/trading/tools/canadian-interest-rate-expectations

Canada’s inflation rate rose to 2.9% in March on higher gas prices:

https://www.thestar.com/business/canadas-inflation-rate-rose-to-2-9-in-march-on-higher-gas-prices/article_a1ee368a-fb36-11ee-914f-ffd0f05ff84d.html

Canadian Dollars to U.S. Dollar Spot Exchange Rate:

https://fred.stlouisfed.org/series/DEXCAUS

1997 Monetary Policy Report:

https://www.bankofcanada.ca/wp-content/uploads/2010/04/mpr_apr_1997.pdf

Fed Hiking Rates to 6.5% Is ‘Real Risk’ for UBS Strategists:

https://www.bloomberg.com/news/articles/2024-04-15/fed-hiking-rates-to-6-5-is-real-risk-for-ubs-strategists

Larry Summers Says CPI Raises Chances That Fed’s Next Move Is to Hike:

https://www.bloomberg.com/news/articles/2024-04-10/summers-says-have-to-seriously-consider-next-fed-move-is-a-hike

Interest Rates: Immediate Rates ( 24 Hours): Central Bank Rates: Total for Canada:

https://fred.stlouisfed.org/series/IRSTCB01CAM156N

Some current economic issues in Canada:

https://www.bankofcanada.ca/1996/06/some-current-economic-issues-canada/

Freeland tables her fourth federal budget — this time with a tight focus on housing:

https://www.cbc.ca/news/politics/freeland-tables-fourth-federal-budget-1.7174176

Consumer Price Index, March 2024:

https://www150.statcan.gc.ca/n1/daily-quotidien/240416/dq240416a-eng.htm?indid=3665-1&indgeo=0 />
Canada March CPI edges up; easing core inflation keeps June rate cut hopes alive:

https://www.reuters.com/world/americas/canadas-inflation-rate-ticks-up-29-underlying-cooling-continues-2024-04-16/

Canada 5 Year Government Bond:

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx />
U.S. inflation higher than expected, giving Fed more cause to pause:

https://financialpost.com/news/economy/us-inflation-higher-than-expected

US stocks waver as rising Treasury Yields, Middle East tensions cap gains:

https://www.reuters.com/markets/global-markets-wrapup-1-2024-04-16/

Canada's inflation rate ticks up to 2.9% in March amid higher gas prices, boosting June rate-cut bets:

https://ca.finance.yahoo.com/news/canadas-inflation-rate-ticks-up-to-29-in-march-amid-higher-gas-prices-boosting-june-rate-cut-bets-134804376.html

Canadian Dollar/U.S. Dollar:

https://www.theglobeandmail.com/investing/markets/currencies/CADUSD/

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