The Bank of Canada kept rates unchanged. The Canadian dollar fell to its lowest level since October against the US dollar.. CAD is expected to continue under bearish pressureaccording to Commerzbank economists.
The BoC is not surprising and takes a breather
“The BoC kept its reference rate at 4.5%, as expected. In his statement, he confirmed his position to wait and see what happens, but stressed that he was willing to raise rates further if necessary to bring the inflation rate back to the 2% target. No surprise.”
“The BoC’s approach is in stark contrast to that of the Fed and the ECB, which have signaled further tightening. Consequently, CAD should continue to struggle to prevail against USD and EUR.”
“The market will probably be positioning for both the US and Canadian labor market reports due out on Friday. US data is likely to have a bigger effect on USD/CAD Should Canadian data be strong and US data strong, the CAD is likely to experience limited support against the USD.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
