Sorry but I just can’t hop on the bandwagon. In my professional opinion, November’s core inflation readings leaned more toward continued hike risk than toward market pricing for a cut by March/April that would be a major policy error right into the thick of the Spring housing market and Winter government budget season. For now, however, this is short-term data noise for a central bank that is saying it wants a lot of data before doing much of anything. Markets reacted by driving a half penny appreciation in the C$ relative to the USD, pushing the Canada 2-year yield up 5bps post data to reverse the earlier ... (full story)