• Markets recovering from Wednesday’s Fed showing.
• Canada data prints low-tier on Thursday, but BoC’s Macklem makes second appearance.
• US NFP Friday looms ahead, economic calendar moderate until then.

The Canadian Dollar (CAD) is recovering ground alongside broader market risk appetite on Thursday after the US Federal Reserve (Fed) spiked investor tensions in the midweek market session. S&P Global has shifted their rate cut expectations for the year to a single quarter-point trim in December. Consensus on Fed rate cuts is increasingly inconsistent with the CME’s FedWatch Tool showing rate markets are now betting on only a 60% chance of a September rate cut.

Bank of Canada (BoC) Governor Tiff Macklem made his second appearance in as many days. The head of the Canadian central bank testified before the Canadian government’s House of Commons Standing Committee on Finance alongside BoC Senior Deputy Governor Carolyn Rodgers. Elsewhere on the data docket, Canadian International Merchandise Trade Balance figures in March unexpectedly fell but saw few ripples in broader markets.