Canadian Dollar Forecast: USD/CAD Strength After Trump Tariff Threat

Factory orders in the United States rose by 0.2% in October compared to the month prior, landing at $586.7 billion, according to the report published by the Census Bureau on ...

Ladies and gentlemen, it is a great pleasure to be here and address such a distinguished audience of financial market experts. As seasoned market observers, you are undoubtedly accustomed to the ups and downs of financial markets. In the early autumn of 2023, financial markets were expecting that the Eurosystem would reduce its monetary policy rate by approximately 60 basis points throughout 2024. Just three months later, progress in central banks’ efforts to tame inflation, together with a weakening real economy, led markets to believe that central banks would significantly accelerate their rate-cutting cycle, with a cumulative reduction of 160 basis points reckoned to be likely. However, in the first half of 2024, inflation proved to be more persistent than anticipated. And the real economy, including the labour market, showed renewed signs of resilience. Consequently, expectations for rate cuts in the euro area for 2024 decreased steadily to approximately 65 basis points by June 2024. Subsequently, the pendulum swung back again as we saw the inflation rate coming in several times lower than expected and the economy slowing down. Following the three 25-basis-point cuts already implemented in June, September and October, markets currently expect the overnight money market rate to stand approximately 100 basis points lower throughout 2024. What accounts for these significant fluctuations in market expectations? The Eurosystem can clo post: ECB’s Nagel Favours Gradual, Cautious Approach To Rate Cuts - Has No Objection Now To Cutting Rates Next Week, But Is Reserving Judgement Until The Meeting post: ECB'S NAGEL SAYS NO SIGNIFICANT RECOVERY EXPECTED IN GERMANY IN THE SHORT TERM post: NAGEL OF ECB: NO SIGNIFICANT RISK OF INFLATION UNDERSHOOTING