USD/CAD up 33 pips to 1.4011
USD/CAD rose as high as 1.4062 at the start of North American trading but it's slipped back. There's chatter about a large selling order from a leveraged fund that's pulling the pair down. Normally, you would expect more USD/CAD strength given the oil drop but it might only be a matter of time.
In the bigger picture, the Globe & Mail is out with an article on the Bank of Canada and it says the January decision not to cut rates was 'a close one' without saying where it got the information.
The rest of the column focuses on the BOC inflation target. It notes that the latest decision and MPR didn't have an estimate of the "underlying trend in inflation." It had previously been 1.5-1.7%.
It goes on to speculate about why. One reason could be that the BOC is struggling to forecast because of the rapidly declining CAD; another is that it's renewing its mandate.
