On Wednesday a very confident Bank of Canada governor Poloz increased the key central bank interest rate to 75 from 50 basis points. Yesterday the IMF released a report on the country, written before the hike, warning that the business investment remained weak, non-energy exports are under-performing, housing imbalances have increased and trade negotiations with the US are uncertain indeed. This against a backdrop of record high household borrowing and an economy heavily reliant on the construction industry and property more generally (where many feel it’s a bubble).
A nasty little doji candle after Wednesday’s strong rally does not bode well even if momentum did indeed turn bullish. Keep in mind that Brexit negotiations with Michel Barnier resume on Monday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.