{"id":69272,"date":"2023-09-07T11:19:38","date_gmt":"2023-09-07T08:19:38","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=69272"},"modified":"2025-12-01T13:18:38","modified_gmt":"2025-12-01T11:18:38","slug":"the-boc-remains-on-hold","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/nl\/the-boc-remains-on-hold\/","title":{"rendered":"The BoC remains on hold"},"content":{"rendered":"

During yesterday\u2019s trading session, we highlight the BoC’s decision to remain on pat, yet the bank stated that they are \u201cprepared to increase the policy interest rate further if needed\u201d, implying that the door for future rate hikes is still open, should it be required. The BoC\u2019s stance contributed to some market volatility as traders reassessed North American monetary outlooks. In the US, the Fed\u2019s Beige Book was released yesterday, which was indicative of a slowing in economic activity and that the hiring growth period peaked during the summer, potentially hinting that the US economy may be gradually losing steam, which could weigh on the dollar. On the contrary, the US ISM Non-Manufacturing PMI figures released yesterday were indicative of an expansion in economic activity for the US non-manufacturing sector, implying a more resilient industry than what was anticipated by market analysts. As a result, the financial release could potentially provide support for the Fed should they decide to hike in their next meeting, as was implied by certain monetary policy officials such as Cleveland Fed President Mester and Fed Governor Waller. Over in Asia, during today\u2019s session, the Chinese trade data was released for August, which, following an extremely disappointing decline, now appears to have regained steam with the exports and imports rates both exceeding market analysts’ expectations after coming in at -8.8% yoy and -7.3% yoy respectively. The better-than-expected trade data could support the case that the Chinese economy appears to be rebounding slightly following measures taken by the Chinese Government, yet in our view the fundamental issues surrounding the Chinese economy still persist, which could weigh on the CNY and AUD. Furthermore, we note that BOJ\u2019s Nakagawa implied today that the bank\u2019s 2% inflation target is not within sight, implying that the bank\u2019s ultra-loose monetary policy may remain in place, at least for now. These dynamics, combined with the BoC’s cautious tone, may continue to shape broader market sentiment across commodity-linked currencies.<\/p>\n\n\n\n

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