I suspect the latest move in markets is more about the PBOC than the Bank of Canada but the market is in the mood to buy short-dated bonds as the week gets underway. That's led to broad US dollar selling that's accelerated in the last half-hour. A soft Canadian CPI report may also be helping in a reminder that the tide on inflation is turning.
Gold is beneficiary at the moment, rising $12 to a session high at $2030, which is the highest since Feb 12. Yuan weakness after today's PBOC MLF cut is a driver for emerging markets and for gold, though you wouldn't know it from today's lacklustre gains in Chinese stock markets.
The euro is a winner on the latest dollar move, rising 45 pips to 1.0821 on the day. That's the highest since Feb 2.
I'll be keeping an eye on stocks at the open. Futures are down 15 points on the S&P 500 but with yields down 6.5 bps at the front end along with USD weakness, there could should be some dip buying.
