Credit: Shutterstock photoJohn M. Bland, MBA, co-founder, Global-View.com
Bank Of Canada Dovish Tone Surprises Markets The Bank of Canada surprised the markets with its dovish tone following its latest monetary policy meeting on March 6. While the central Bank kept its money market key money market interest rate steady at 1.75%, as expected. It added that the economic outlook continues to warrant a policy interest rate that is below bank's neutral range- It said that the economy will be weaker in 1H19 than forecast and that 4Q18 slowdown had been sharper and more broadly based than forecast. It cited increased uncertainty on timing of future rate increases and that it will take time to gauge persistence of below potential growth and inflation implications. The Bank of Canada will monitor household spending, oil markets, and global trade policy. It also forecasts inflation slightly below its 2% target through most of 2019 due to temporary factors such as low energy prices and wider output gap.
Heading into the policy decision, the Canadian 10-yr note was yielding 1.842% and in early afternoon North American trade, it was yielding just above 1.8000%. In late afternoon activity USD was quoted close to 1.3435 from !.3380. Just before the mid-morning Bank of Canada policy announcement. The weakening of the Canadian currency should provide a stimulus to the economy.
The European Central Bank Apparently Leaks Outcome of Policy Meeting on Wednesday The ECB Wednesday presumably let the cat out of the bag Wednesday ahead of its policy meeting on Thursday March 7. I usually do not trust policy leaks in the press, but the detailed nature of a press report the day before the Thursday announcement had a ring of authenticity. We will soon find out if its true. The story was very much in line with market expectations. ECB was said to be holding discussions on the design of new (TLTRO) targeted loans). Furthermore, It is expected to cut its inflation projections through 2021. Financial markets had been preparing for this announcement all week.
GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium
Thu 7 Mar 2019
A 01:30 EZ- GDP
AA 12:45 EZ- ECB Decision
A 13:30 US- Weekly Jobless
A 23:30 JP- GDP
Fri 8 Mar 2019
AA 13:30 US/CA- Employment
A 13:30 US- Housing Starts/Permits
GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium
Mon 11 Mar 2019
AA 13:30 US- Retail Sales
Tue 12 Mar 2019
AA 09:30 UK- Trade/Output
AA 13:30 US- CPI
Wed 13 Mar 2019
A 13:30 US- Durable Goods
A 13:30 US- PPI
A 16:00 US- EIA Crude
Thu 14 Mar 2019
A 13:30 US- Weekly Jobless
A 15:00 US- NAHB
Fri 15 Mar 2019
AA 03:00 JP- BOJ Decision
A 14:15 US- Industrial Production
A 15:00 US- Flash Univ of Michigan
AA 03:00 US- Powell Speech
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
