Traders Misprice Canada Rates, Too Bearish on CAD -- Market Talk

Dow Jones

Nov 27, 2024

1010 ET - The pivot by markets on Canadian rates appears misguided, and traders might be too "extreme" in their bearish Canadian-dollar positioning. says Montreal-based trading and research firm PGM Global. PGM says traders are scaling back the scope of Bank of Canada rate cuts based on a pickup in CPI in October. "We would bet on a faster pace of cuts," the firm says. The hotter-than-expected October data was due to "noise/methodology issues," related to property taxes, which reflect previous house-price appreciation. "Inflation is cooling," the firm says, adding that the labor market is soft. Rate spreads, relative to the US, have weighed on CAD, but PGM says the bearish position "is so extreme that a tactical bet on a CAD bounce," looks tempting.(Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

November 27, 2024 10:10 ET (15:10 GMT)

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PGM says traders are scaling back the scope of Bank of Canada rate cuts based on a pickup in CPI in October. \"We would bet on a faster pace of cuts,\" the firm says. The hotter-than-expected October data was due to \"noise/methodology issues,\" related to property taxes, which reflect previous house-price appreciation. \"Inflation is cooling,\" the firm says, adding that the labor market is soft. Rate spreads, relative to the US, have weighed on CAD, but PGM says the bearish position \"is so extreme that a tactical bet on a CAD bounce,\" looks tempting.(Paul.Vieira@wsj.com; @paulvieira) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  November 27, 2024 10:10 ET (15:10 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Traders Misprice Canada Rates, Too Bearish on CAD -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTraders Misprice Canada Rates, Too Bearish on CAD -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-11-27 23:10</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1010 ET - The pivot by markets on Canadian rates appears misguided, and traders might be too \"extreme\" in their bearish Canadian-dollar positioning. says Montreal-based trading and research firm PGM Global. PGM says traders are scaling back the scope of Bank of Canada rate cuts based on a pickup in CPI in October. \"We would bet on a faster pace of cuts,\" the firm says. The hotter-than-expected October data was due to \"noise/methodology issues,\" related to property taxes, which reflect previous house-price appreciation. \"Inflation is cooling,\" the firm says, adding that the labor market is soft. Rate spreads, relative to the US, have weighed on CAD, but PGM says the bearish position \"is so extreme that a tactical bet on a CAD bounce,\" looks tempting.(Paul.Vieira@wsj.com; @paulvieira) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  November 27, 2024 10:10 ET (15:10 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK6505","symbol_name":"周期性消费品与消费者服务","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2486787802","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2486787802","pubTimestamp":1732720200,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1010 ET - The pivot by markets on Canadian rates appears misguided, and traders might be too \"extreme\" in their bearish Canadian-dollar positioning. says Montreal-based trading and research firm PGM Global. PGM says traders are scaling back the scope of Bank of Canada rate cuts based on a pickup in CPI in October. \"We would bet on a faster pace of cuts,\" the firm says. The hotter-than-expected October data was due to \"noise/methodology issues,\" related to property taxes, which reflect previous house-price appreciation. \"Inflation is cooling,\" the firm says, adding that the labor market is soft. 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The hotter-than-expected October data was due to \"noise/methodology issues,\" related to property taxes, which reflect previous house-price appreciation. \"Inflation is cooling,\" the firm says, adding that the labor market is soft. Rate spreads, relative to the US, have weighed on CAD, but PGM says the bearish position \"is so extreme that a tactical bet on a CAD bounce,\" looks tempting.(Paul.Vieira@wsj.com; @paulvieira) \n\n\n  (END) Dow Jones Newswires\n\n\n  November 27, 2024 10:10 ET (15:10 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}