Bank of Canada Gov. Macklem Acknowledges Limits on Rate-Policy Divergence From Fed

“As of now, traders in the overnight-index swap market are pricing in just over two rate cuts in Canada for the remainder of the year, said Karl Schamotta, chief market strategist at Corpay a foreign-exchange and global payments company. He said he believes foreign-exchange traders have priced in earlier and more rate cuts from the Bank of Canada, relative to the Fed. “I don’t think investors see any real constraint on the Bank of Canada’s capacity to follow a divergent rate trajectory,” Schamotta said.” Read the Wall Street Journal article here.