Banda Asia: Bank of Canada's interest rate stabilization issues a dovish resolution Breakthrough in the US and Canada1.33

The Bank of Canada held interest rates unchanged yesterday, focusing on the "enormous uncertainty" facing the economy. However, the Bank of Canada pointed out that growth in the fourth quarter may be stronger than expected. The Bank of Canada stated that without considering the rise in energy prices1Monthly inflation rate pushed up2%The temporary impact generated above. The Central Bank of China pointed out that considering its three core inflation indicators comprehensively, it continues to show that there is still a large amount of idle in the economy. The Bank of Canada stated that it continues to monitor1The various risks mentioned in the monthly monetary policy report include unclear policies that the new US President Trump will launch. The Bank of Canada maintains benchmark interest rates at0.5%Unchanged, stating that "we are still paying attention to the significant uncertainties facing the economic outlook and continuing to observe them."1The development of various risks mentioned in the monthly monetary policy report The Bank of Canada stated that recent global and Canadian economic data aligns with the bank's estimate that economic growth is improving. Recent consumer spending and property market data show that,2016The economic growth rate in the fourth quarter of this year may be slightly faster than the central bank's expected growth rate1.5%However, exports still face challenges in terms of competitiveness.


In addition, Bank of Japan's reviewing committee member, Kenyu Sato, stated yesterday that if Japan's economy and price improvements have raised long-term interest rates, the central bank should flexibly raise its bond yield target. Sato Kenyu pointed out that the expectation of steady interest rate hikes by the Federal Reserve is driving up global long-term interest rates, putting upward pressure on Japan's long-term interest rates and posing a challenge to the Bank of Japan's efforts to control the yield curve. He also pointed out that the Bank of Japan is guiding10The yield of one-year treasury bond bonds is about0%When in the vicinity, rigid intervals should not be set. Kento Sato said that he personally feels that President Trump's speech lacks specific details. When inflation reaches2%It is possible for the Bank of Japan to start raising interest rates before its target, but the possibility of raising the Bank of Japan's yield target should not be ruled out. There is no consensus on how frequently and how much the Bank of Japan should adjust its yield target in the future, but it will flexibly adjust the scale of each bond operation. It is crucial to plan a "soft landing" for the unprecedented and massive stimulus plan of the Bank of Japan.

The data that needs attention today is Switzerland1Monthly actual retail sales annual rate, Eurozone1Monthly unemployment rate, Eurozone2Monthly and quarterly adjustmentsCPIAnnual rate, Canada12After adjusting the roseGDPMonthly rate and US cutoff2month25Number of initial claims for unemployment benefits in the current week.


gold/dollar

Gold fluctuated downward yesterday and fell for a while1240At the checkpoint and breaking a one week low, the spot exchange rate is trading at1246Nearby. Federal Reserve3The expected increase in interest rates in the month is the main reason for the downward pressure on gold. But goldETFThe increase in holdings, strong physical demand from India, and overall weak US economic data during the period have limited the downward space for gold. Follow Today1255Nearby pressure situation, supported below1235Near.

dollar/Japanese yen

dollar/The Japanese yen surged significantly yesterday, breaking new records2Weekly high, spot exchange rate trading at114.00Nearby. In addition to short covering providing some support for the exchange rate, the US dollar index has a significant impact on the Federal Reserve3Supported by the expected increase in monthly interest rate hikes, the impact102.00The checkpoint is also an important factor supporting the rise of the exchange rate. In addition, the dovish comments made by members of the Bank of Japan during the period also provided strong support for the exchange rate. Bank of Japan's reviewing committee member, Kenyu Sato, stated yesterday that the Bank of Japan is not yet sufficient to take action to raise interest rates. Follow Today115.00Nearby pressure situation, supported below113.00Near.

dollar/Cad

dollar/The Canadian dollar fluctuated upwards yesterday, breaking through1.3300Pass and refresh5Weekly high, spot exchange rate trading at1.3350Nearby. In addition to the strong support provided by hawkish comments from Federal Reserve officials for the rise of the US dollar index, the Bank of Canada's interest rate stability and issuance of a dovish interest rate statement during the period were also important factors supporting the rise of the exchange rate. The Bank of Canada stated overnight that the significant uncertainty facing the economic outlook is having an impact. Follow Today1.3450Nearby pressure situation, supported below1.3250Near.