BOC followed into Fed’s footsteps and cut interest rates by 50 bps, a move that was 50% expected by the markets. Canadian central bank decided to take actual measures to support the economy from the serious impact of the spreading epidemic. As a result Canadian dollar took a hit. The USD/CAD pair gained almost 70 pips.
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The US ISM services index unexpectedly soared to 57.3 points, surging on very high new orders component. This is a completely different picture from the Markit services PMI that showed a decline to just 49.4 points… on new orders. The data is puzzling to say the least and means that we really do not know for sure where the US economy was ahead of the virus impact that should be reflected in March data.
