- The Bank of Canada held rates this month sparking a further rally in the Canadian dollar.
- The near term chart is bullish.
- The longer term charts say otherwise.
And that’s what has the BoC worried and why it didn’t raise interest rates, despite strong year-over-year economic data. But, much of that good data, per the BoC’s statement is a result of housing bubbles in Toronto and Vancouver.
So, if those bubbles are bursting then the BoC has no room to raise rates and exacerbate an already bad situation.