At its March 2 Policay meeting, The Bank of Canada (BOC) maintained its benchmark short –term rate at all-time low of 0.25percent, but its comments were a bit more hawkish than at the January meeting. Hawkish means rates are expected to rise, while dovish means they are expected to fall. From April2009, the BOC’s benchmark rate has not been changed and is not expected to change until the end of the second quarter of this year.
This Latest report which was published on March 2 was definitely hawkish, and the BOC is slowly and surely trying to increase in rates as the economy picks up. After publishing this Overnight rate by BOC the USDCAD down rapidly. Also the news is coming from Greeks so overall the pressure is into all the currencies as against the USD.
Today there are four important data’s are going to publish.Teh first two data’s relates with the Canadian dollar. The first is called Building Permits m/m publishes at 7 PM (Indian Time), it’s an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building. The previous data was 2.4% and forecasted is 1%, this is negative for CAD. The other data is called Ivey PMI (Richard Ivey School of Business); it’s a leading indicator of economic health. If the data is above 50.0 indicates industry expansion, below indicates contraction. Previously it was 50.8and forecasted is 56.
Today’s major data’s are related with the USD, called Unemployment claims (Previously it was 496K and forecasted is 472K) and Pending Home Sales m/m. (Previously it was 1% and forecasted 1.4%) So today’s market is looking very volatile.
Dipak Sharma
sdipak83@sify.com
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