The Bank of Canada's governor, Tiff Macklem, is speaking live to the Canadian chamber of commerce.  The global supply chain problems may have peaked, he states, for which he blames for higher inflation. He says, however, that Canadians should expect a rising path of interest rates. 

Key comments

Covid recovery phase is chance to make long overdue gains in Canadian productivity.

Productivity growth is vital to economic growth, increasing wages without raising unit labour costs.

US capital has moved to higher-productivity sectors in larger amounts than in Canada, ‘has been more nimble’.

Expect that business investment will grow faster in Canada than in US.

Some evidence global supply chain problems may have peaked.

• Eyes on USD/CAD as BOC Governor Macklem responds to questions on economy

Watch live: BoC governor Macklem

Macklem speaks live to the Canadian chamber of commerce.

USD/CAD technical update

The price of USD/CAD is in an hourly corrective phase as the US dollar firms in the New York mid-day session. The M-formation is a bullish reversion pattern where the price has a high probability of moving in on the neckline of the formation. In this case, the 50% mean reversion target is located near 1.2680.