BoC Summary of Deliberations acknowledges widening divergence with US on policy

Joshua Gibson FXStreet

The Bank of Canada's (BoC) latest Summary of Deliberations revealed little of note on Wednesday, although several members of the BoC's Governing Council are growing cautious about downside risks and the possibility of a widening divergence between Canada and the US on economic policy.

Key highlights

Members agreed to emphasize in communications that they would take rate decisions one meeting at a time.
Some members were more focused on the downside risks to inflation stemming from the weak economy and restrictive monetary policy.
Members spent considerable time discussing risks around inflation path, such as large number of households renewing mortgages at higher rates in 2025.
Ahead of the Bank of Canada's June 5th rate announcement, the governing council considered the merits of waiting until July 24th to cut rates.
Members discussed the potential for divergence with US, agreed not close to reaching limits of such divergence.
Others put more weight on upside risks associated with persistence in wage growth and potential for housing market rebound.
Other risks include rate cuts leading to an overheated housing market, strong wage growth and weak productivity pushing up service price inflation.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD looks apathetic around 1.1530

EUR/USD reverses Wednesday’s downtick and trades with modest gains in the 1.1530 region following the end of the NA session on Thursday. The pair’s tepid advance comes on the back of the absence of clear direction in the US Dollar despite tensions from the Middle East appear far from alleviated. Later on Friday, investors are expected to monitor the the releases of another revision of GDP figures in the Euroland, US Retail Sales and the preliminary U-Mich gauge.

$4,300 tested as Gold is down on profit-taking, but not out

Gold is testing the $4,300 level as the corrective downside extends into a second day early Friday. Traders remain focused on Middle East developments, Oil price action, and US Federal Reserve interest rate expectations before placing fresh positional bets.

SharpLink to stake $200 million in Ethereum through Lido

SharpLink Gaming announced plans to stake $200 million in Ethereum through Lido as part of its strategy to generate returns from its ETH treasury, according to a Thursday announcement. The allocation will be converted into wrapped staked ETH, which represents staked Ethereum and the associated staking rewards.

Dollar dominance is cracking and the Fort Knox Gold question won’t go away

Imagine somebody repeatedly claiming to have $100,000 in the bank but refusing to produce a statement or even balance the checkbook. The money might be there, but without verification, skepticism would be reasonable.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.