More from Macklem: Normally rate hikes come with CAD appreciation

• Normally when we raise rates, the loonie appreciates and so that does part of the work for us. This time that's not happening
• USD has appreciated considerably over the past year

I see some characterizations of Macklem's comments as hawkish today and that's mostly fair. There's a window for a pivot here but I think worries about a further fall in CAD CAD The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i Read this Term are part of the reason why. Moreover, I don't think the BOC feels the same need to signal a dovish shift ahead of time as others.

In any case, USD strength is really cranking up today with USD/JPY up 120 pips to 1.3736.

More:

• When we assess impact of higher intrest rates on demand, will factor in high household indebtedness levels
• We are more concerned about he upside shocks to inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term than the downside
• Path to a soft landing in Canada is narrow and there are risks
• Whether we can get a soft landing will depend on how sticky inflation is