Almost a 200 pips day back into the Fibonacci region...

Somewhat conflicting Canadian CPI data left the Loonie prone to outside influences and an oil-induced decline to sub-1.2650 lows vs its US counterpart, but Usd/Cad reversed sharply when the BoC matched market expectations for a measured QE taper and compounded the hawkish shift by bringing forward rate hike guidance to H2 next year from 2023 previously.

This is based on the latest MPR assessment that excess slack in the economy will be absorbed earlier to ensure that inflation hits its 2% goal in a sustained manner, and Usd/Cad is now probing bids below Monday’s 1.2471 base into 1.2450.

For more details on the BoC’s April policy statement and MPR forecasts see the Governor Macklem’s post-meeting press conference and trade cautiously.