Bank of Canada's Gov. Tiff Macklem in an interview with Reuters says:

  • We are not even thinking about cut its two interest rates right now.
  • The question were asking ourselves is "have we done enough? We are pausing to assess whether we've done enough"
  • The bar is higher than it was last time for further rate hikes
  • If service price inflation is a stickier than expected, we would likely need to raise rates further
  • The biggest near-term economic risk to Canada would be if rapid reopening of the Chinese economy cost global commodity and oil prices to rise

The Bank of Canada raise rates by 25 basis points to 4.5% and signaled that they would keep rates steady for some time. However, the action does not preclude the Bank of Canada from resuming rate hikes if deemed appropriate.

The USDCAD is back below its 100 hour moving average currently at 1.3392. It is also below its 200 hour moving average 1.34045. It would take a move above both those levels to increase the bullish bias (lower USD). Until then, the soldier more control with support at a swinger between 1.3344 and 1.3358, and at the swing low from January 13 at 1.33204.