Decision as expected...

  • Will continue to take a gradual approach and data driven
  • higher rates will be warranted to restrain inflation
  • expects CPI declined to 2.5%, returned to target in 2H of 2019
  • economy near capacity, investment and exports driving growth
  • Expects 2% GDP growth in 2018, 2.2% in 2019, 1.9% in 2020
  • underlying wage growth of 2.3% shows labor slack remains
  • lower Canadian dollar on US dollar strength, trade concerns
  • higher oil prices to moderate impact of US trade actions
  • sees housing markets beginning to stabilize

The USDCAD has moved lower on the initial reaction as the Bank of Canada sees more hikes (gradually), and in the process moved below the 100 hour MA at 1.31191. The price has also moved to new session lows.

The low from Monday reached 1.3065.

There is a trend line on the daily at 1.3046. Below that and the market will be looking toward the 100 day MA at 1.29184.