All eyes are placed in the Canada Bank today, with the markets divided on whether a rate cut is imminent. While maintaining the rate is our base scenario, uncertainty remains high in weak data and winds against global trade. Regardless of the decision, the tone of the Risk Assessment of the BOC will be key to the direction of the CAD, Danske Bank’s currency analysts report.
The risk balance can influence the body more than the policy rate
“For today’s session of the main peers, the meeting of the Bank of Canada will win traction with divided analysts between a decision without changes and a cut of 25 basic points. We incline towards the first option, but we highlight that it is a call of low conviction in the middle of the continuous commercial uncertainty and the Canadian economic figures that have been declining during the last months.”
“Regardless of the decision on the rate, the markets will focus on the evaluation of the Risk Balance of the Central Bank. A decision without changes today would probably temporarily boost the CAD in a movement that we would favor to sell.”
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.
