Last week was all about the ECB, overshadowing the Bank of Canada and the RBNZ, if not for the surprise rate cut from the RBNZ. Catching the markets by surprise, the Reserve Bank of New Zealand brought down its key lending rates to 2.25%, delivering a 25bps cut and coming out strongly dovish. RBNZ Governor Wheeler did not rule out further rate cuts as inflation in New Zealand remains week amid weakening growth. The fourth quarter GDP numbers are due next week with dovish expectations. The Bank of Canada on the other hand held rates steady at 0.50%. However, Friday's jobs report from Canada showed a dismal print as the unemployment rate rose to 7.30%, the highest since November 2012. While the Loonie fell on the news, USDCAD pared losses on a broadly weaker Greenback. USDCAD touched a new 3-month low at 1.3168 towards late Friday before settling at 1.3215.
ECB Surprises with Extra Dovish Policies
Weekly Report - 13/03/2016