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Economy is likely to be weaker than BoC expects - Nomura

FXStreet (Guatemala) - Research analyst Charles St-Arnaud at Nomura explained that they believe that the economy is likely to be weaker than the BoC expects.

Key Quotes:

"The fact that the Bank of Canada remains confident that the economy will recover strongly from the oil shock suggests to us that the likelihood of a rate cut has diminished substantially.

"As such, we now think the Bank of Canada is unlikely to cut rates over the coming months."

"As a result of the more optimistic BoC, CAD gained 1.4% against USD and short-term rates sold off sharply following the rate decision. Given our view that the risk to the BoC outlook remains on the downside and that USD should continue to appreciate gradually over the coming months, we continue to believe that USD/CAD should move higher going into the second half of the year."

Gold struggles near $1,200

The precious metal is trading slightly lower on Thursday, currently hovering over the psychological $1,200-an-ounce handle...
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AUD/USD breaks above 0.7800

AUD/USD broke above 0.7800 and climbed to 0.7822 hitting the highest level since March 26 as the US dollar plummets across the board.
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