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EUR/CAD: Loonie rallies after hot inflation report make next BOC meeting a coin flip
The Canadian dollar currency is surging against the euro after a hot inflation report raised concerns that the Bank of Canada (BOC) might not be done raising rates. Inflation was clearly boosted by the surge with gasoline prices, and that will get passed to transportation, delivery, and input costs. Inflation is going to end up being sticky and until we see a stronger deterioration in the data, the market is going to lean towards more rate hikes from the BOC. Yesterday, swaps were indicating that the chances of another rate hike were 50/50, now another quarter-rate hike is about to get priced in before year-end. If ... (full story)