More from BoC's dep' Governor, Lynn Patterson: Need more time to assess economic outlook

Ross J Burland FXStreet

BoC's dep' Governor, Lynn Patterson, has been crossing the wires today with further comments:

BoC Patterson: Need more time to assess economic outlook.
BoC Patterson: Economic detour is actually going to be longer.
BoC Patterson: Outside of energy, wage growth closer to 3pct.

She is speaking at Hamilton Chamber of Commerce, Hamilton, Ontario:

"I’m happy to be here to give you an update on the Canadian economy and discuss the decision we made yesterday to keep our key policy interest rate unchanged," ...

"This decision hinged on a number of factors. One was the slowing momentum in the global economy. It is increasingly clear that ongoing trade tensions and associated uncertainties are having an impact. I’m sure many of you here in Hamilton can relate to that as you deal with the steel tariffs."

"Another factor was the performance of the Canadian economy in the fourth quarter of 2018. While we had been anticipating a slowdown, coming primarily from the oil sector, it was sharper and more broad-based than expected. This is despite strong employment and labour income growth and core measures of inflation that have continued to hover near 2 per cent."

Earlier key comments:

Central bank still expects economic growth to pick up later in 2019, supported by strength in employment and rising wages.
Repeats Canadian economy will be weaker in first half of 2019 than projected in January.
Forecasts that easing in household spending will continue throughout 2019-2020.
Quality of new borrowing has improved on new mortgage rules, fewer households taking out mortgages with debt-to-income ratio above 450 percent.
Housing market remains in a state of adjustment and flux, with wide regional differences.
Biggest negative surprise in housing data came from renovations as significant adjustments occur in housing markets.
Sales of new cars softened in 2018, as did growth in spending on vacations, dinners and entertainment.
Canadians managing higher carrying costs by scaling back spending, data suggests majority of households are managing debt levels.
U.S. economy is moderating as expected, anticipate it will continue to slow to a pace closer to its potential.

Full speech delivered at Hamilton Chamber of Commerce, Hamilton, Ontario:

Economic Progress Report: Sensible Shifts in Household Spending

About Lynn Patterson

Lynn Patterson was appointed Deputy Governor, effective May 2014. s a member of the Bank’s Governing Council, she shares responsibility for decisions with respect to monetary policy and financial system stability, and for setting the strategic direction of the Bank.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD weakens to near 1.3300 as geopolitical risks bolster US Dollar

The GBP/USD pair attracts some sellers to around 1.3310 during the early European session on Wednesday. Escalating conflict in the Middle East triggers a "flight to safety," supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold sticks to intraday gains above $5,150; upside seems limited amid bullish USD

Gold preserves its modest intraday gains through the Asian session on Wednesday and currently trades just above the $5,150 level, up around 1.30% for the day. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

When rates start driving the bus through a war zone

The volatility regime itself is also changing character. EM carry trades thrive in calm markets. They suffocate in environments that resemble Buckaroo Banzai trading conditions, where headlines move faster than models. That is exactly the world investors are now trying to recalibrate to. Euro rate volatility had been remarkably subdued even while equities were wobbling. That stability is now being questioned, and once volatility leaks into rates it rarely stays contained. Indeed, carry trades love calm seas. War turns the ocean into white water.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.