BoC’s Poloz vows to downplay the fastening inflation in Canada 17/4/2014
The US dollar is broadly offered versus G10 and EM currencies after Fed Chair Yellen is back to her dovish camp (where we originally saw her). In her speech yesterday, Yellen said the rates will remain low for longer period of time due to persisting effects of crisis and that the first rate hike is not seen before considerable time after the end of bond purchasing program. The message was clear. In UK, the Cable hit a fresh year high (1.6842) on broad based USD unwind, EUR/USD remains bid despite weak inflation report released in March. The data focus is on Canadian CPI figures today. CAD is weaker amid BoC kept the neutral stance at its policy meeting on April 16th. A positive surprise in CPI (faster-than-expected inflation) should however calm down the appetite for further USD/CAD.