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Bank of Canada Governor Tiff Macklem said inflation is now very concentrated in gasoline and oil, that the central bank's tolerance for higher inflation is limited, and that global bond yield spillover into Canada will factor into policy — hawkish enough to send USD/CAD to new session lows. The transmission runs through rate-path repricing: a higher-for-longer BoC keeps front-end Canadian yields supported and firms the CAD, while the oil channel means Middle East supply risk now feeds directly into both CPI prints and the currency. Watch the 200-hour moving average at 1.3858, already broken, with the 200-day at 1.3839 as the next support; a sustained break needs confirmation from US CPI and Fed pricing, since the pair is equally driven by the USD leg.
As a Macro signal, watch whether it changes price action, volatility, or flows around CL=F.
Original Source: InvestingLive Central Banks
This page is market information analysis, not investment advice.
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