That's not suggesting to me that he sees himself with having a whole battery of rate hikes going forward. I would not be surprised at all to see them go one more time and then pause.
What we're seeing in terms of currency movements - and it will probably continue at least over the near-term - is a shift in global monetary policy expectations. There's a gearing-down of expectations for Fed tightening, coupled with increased tightening expectations elsewhere.
Most importantly, the Bank of Canada is not giving the impression that it has much of an appetite for further rate hikes beyond the 4 percent level.
Dodge said nothing new that he had not already said last week, no surprise there.
This morning's merchandise trade report certainly came as a shocker, but this is one case where the headline looks much worse than the details of the data.
The strength of today's report certainly will not be lost on the Bank of Canada ... as a result, we still believe the odds favor another rate hike from the bank in April.
Currently, the Canadian dollar has been on a tear, an absolute tear. It's been massively outperforming other currencies.
The Bank of Canada cannot afford to be complacent if it wants to keep inflation in check over its 18-24 month time horizon ... Look for the overnight rate to peak at 4 percent.
The weakness in the Canadian dollar is essentially a follow-through from yesterday's Fed rate decision that has the market anticipating at least one more hike.
There's little market reaction I think for two things. First, the strength was anticipated to some extent. Second, the market is very tightly focused on what the Bank of Canada is doing this afternoon.