Headlines from Q&A of BOC Gov. Poloz and Sen. Deputy Gov. Wilkins

Testimony

Gov. Stephen Poloz:

• Economy is about 50% more sensitive to interest rates
• We believe investment in oil sector will remain flat
• drop in housing from pull-forward effect to reverse
• fundamentals of Canada housing markets remain solid

Sen. Deputy Gov. Carolyn Wilkins:

• We believe real estate markets are rebounding
• Signs of speculation is declining housing market
• BOC needs about 1 year to assess B-20 rule changes.

The USDCAD has dipped a bit as the market digests the comments.

The 200 bar MA on the 4-hour is at 1.2019. The 50% is at 1.28256. The current price trades at 1.28354 after trading as high as 1.2858.