 Canadian Dollar sees a broad decline in early US session due to growing speculation about rate cut by BoC in the near future. April's headline CPI slowed as expected, despite a significant increase in gasoline prices. Core inflation measures also showed more progress in disinflation than anticipated. While it remains uncertain if this progress will be enough to prompt BoC to ease policy at next meeting, speculation is likely to intensify ahead of June 5 meeting. Meanwhile, New Zealand Dollar followed Loonie as the second weakest performer of the day. Attention is now turning to RBNZ rate decision scheduled for tomorrow, with most market participants expecting the central bank to hold the rate steady at 5.50%. While many analysts see November as the likely timing for the first rate cut, this view is not universally held. The upcoming OCR forecasts from RBNZ will be closely scrutinized, particularly to see if they adjust to remove the possibility of another rate hike. However, it remains uncertain whether RBNZ will move up the timeline for the first rate cut from next year... |
