USDCAD continue to weaken after BoC minutes

USDCAD pair continues today drop below 1.36 after Bank of Canada minutes from the August meeting. However, declines after the BoC minutes were not impressive, which may signal oversold conditions ahead of the Fed meeting scheduled at 7 PM BST. The BoC  council was puzzled by successive upside surprises in US household spending. Here are the highlights from the last BoC meeting.

• MEMBERS DISCUSSED WHETHER WEAKNESS IN CANADIAN CONSUMPTION AND HOUSING COULD PARTLY BE DUE TO CAUTION ON THE PART OF HOUSEHOLDS.

• MEMBERS DISCUSSED A SCENARIO WHERE THE ECONOMY COULD REBOUND FASTER THAN ANTICIPATED; IN THIS CASE, IT MIGHT BE APPROPRIATE TO SLOW THE PACE OF CUTS.

• CONCERN ABOUT DOWNSIDE RISKS WAS LINKED TO POTENTIAL FURTHER WEAKENING OF THE ECONOMY AND LABOR MARKET.

• OTHER MEMBERS TOOK THE VIEW THAT RISKS TO INFLATION OUTLOOK WERE BALANCED

• THE GOVERNING COUNCIL AGREED IT WOULD LIKE TO SEE THE ECONOMY GROW AT A RATE ABOVE POTENTIAL OUTPUT.

• MEMBERS DISCUSSED A SECOND SCENARIO WHERE THE ECONOMY AND LABOR MARKET COULD WEAKEN; IN THIS CASE IT MIGHT BE APPROPRIATE TO SPEED THE PACE OF CUTS.

Source: xStation5