BoC Macklem: Further adjustments to our QE program will be gradual

Ross J Burland FXStreet

Reuters reported that the Bank of Canada saw some choppiness in growth in the second quarter of 2021 following a sharp economic recovery from the COVID-19 pandemic at the start of the year, Governor Tiff Macklem said on Wednesday.

key comments

Macklem told the Senate's banking committee that a complete recovery would still take some time and described the third wave of the coronavirus as a setback.

Bank of Canada governor tiff Macklem says we are seeing some early signs of slowing in the housing market.

BoC's Macklem says it will take some time for the housing market to come back into balance.

Bank of Canada governor tiff Macklem says economic recovery is making good progress.

BoC's Macklem says complete recovery will still take some time; the third wave of the virus has been a setback.

BoC's Macklem says following a sharp bounce back in economic activity in the fall and winter, we’ve seen choppiness in growth again in the second quarter of 2021.

BoC's Macklem says overall, we expect the housing market to be better balanced, but we will continue to watch this area closely.

BoC's Macklem says further adjustments to our QE program will be gradual, and we will be deliberate in both our assessment of incoming data and the communication of our analysis.

The price of CAD is lower on the back of US dollar strength. Corrections are being watched for but traders should be prudent to wait for a bearish structure in the greenback.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.