​EBC Markets Briefing | Loonie steadies; Boston Scientific investors on tenterhook

The Canadian dollar moved sideways on Tuesday, without clues on a US-Iran deal to reopen Gulf shipping. Tehran has yet to decide how to proceed with the diplomatic process.

Trump on Monday again threatened Iran with overwhelming military force, saying "lots of bombs [will] start going off" if no deal is reached after the shaky ceasefire expires Tuesday evening.

Canada's annual inflation rate rose to 2.4% in March as higher fuel prices increased the cost of transportation, which is the second biggest contributor to the CPI basket, by 3.7%.

BOC Governor Tiff Macklem said last week that the central bank was not concerned about a short-term spike in inflation expectations. Money markets are pricing in a 25-bp rate hike in December.

Societe Generale noted a "big disconnect" between the relative underperformance of commodity currencies and a booming index of commodities in recent years, leaving the currencies ample room to rally.

Despite that, in the short term, the currency is vulnerable to the concerns the war will hit economic growth, and the resurgence of the greenback as a safe haven in recent weeks has dented its appeal.

Loonie reached a multi-month low of approximately 1.3967 per dollar in late March, but has since gained over 300 pips. The bias is firmly bullish with it trading along a well-defined ascending trendline.

Asset recap

As of market close on 20 April, among EBC major products, Paycom Software shares led gains. Barclays maintains the stock with a hold rating, and maintains the target price at $150.

Boston Scientific slipped ahead of earnings release. Investors still debating the commercial implications of recently released WATCHMAN FLX clinical results and broader concerns about growth drivers in 2026.

Oil prices have jumped after Trump said its navy had intercepted and seized an Iran-flagged cargo ship. The naval blockade is expected to continue until a deal was agreed by the two countries.

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