Usd/Cad rebounds to 1.3679, remains wary of month end selling

The impressive US consumer confidence data and the faster than expected Australian CPI update for April released overnight has added to the idea that global interest rates, for the most part, will have to stay high for longer.

However the Bank of Canada still look likely to cut rates soon, joining the SNB and the Riksbank as the G10 central banks who have started their easing cycle, but the question remains, will it be June or July.

For June, read next Wednesday, and as you can see from the bottom, right pane of the dashboard above, markets are expecting a cut sooner rather than later.

We still think that the BoC may err on the side of caution and wait until July, when they will have two more CPI and jobs reports to ruminate over. Another factor is the strength of the US economy and its consumers, which have a sizeable impact on Canada, as the US is its largest export market and a major influence on their economy.

USD/CAD has rebounded to 1.3679, after yesterday's upbeat US data, but there is still the expected Usd sales for month-end to negotiate heading into the end of the week. Bids remain solid into 1.3600, while offers are seen up at 1.3750.