After last week’s very well-received speech, the Governor of the Bank of Canada, Stephen Poloz, gave an interview to the Globe and Mail newspaper this last weekend in which he played down the importance of so-called forward guidance. “I'm confident that other central banks, now that we are getting much more into normalcy, will gradually temper down the details around their forward guidance, too… I'm not going to judge whether the market got it right or not. But it does seem like the market has a tendency to seize on a new word as if it's a new secret code. Caution does not mean sitting back and doing nothing.”
For the moment, the Canadian Dollar hasn’t really responded to these latest comments. It spent all of Monday trapped in a range from USD1.2848 to 1.2878; shrugging off a 30c fall in oil prices but failing to get any real traction from Mr. Poloz’s call on interest rates that, “We need to get ourselves up there for real, and to the 2-per-cent zone, so we have room to manoeuvre for the next shock that comes along."
For the rest of the week, there’s still plenty to come on the Canadian economic data calendar. Wednesday is wholesale trade, Thursday is CPI and retail sales and on Friday it’s the monthly GDP numbers for October. After an overnight trading range in Asia which has seen USD/CAD stuck between 1.2860-1.2873, the Canadian Dollar opens in London this morning at 1.2860 with GBP/CAD at 1.7205.