The Canadian dollar (CAD) lost ground yesterday after the weakest IPC data of what was expected to increase the market speculation that the BOC could cut the interest rates in today’s policy decision (13:45 GMT), says Shaun Osborne, head of Scotiabank FX strategy.
General trends remain bassists
“The CAD is recovering much of the lost land with yesterday’s data, however, it should be able to improve a little more if the bank coincides with the market consensus for a decision to maintain. Swaps are valuing a little more risk of a cut, but the valuation remains equivocal in the best case.”
“Those responsible for politics may want more clarity about the fluid tariff situation before deciding to relax the policy again. The bank will publish its updated MPR this morning at 10et and Governor Macklem and the DG Senior Rogers will speak at 10.30et.”
“The solid profits in the USD yesterday, after the pause in the fall of the USD in the low area of ​​1.38, can indicate a short -term minimal for the USD/CAD at least. However, the general trends remain bassists, which suggests a limited reach for the USD to extend the profits. The resistance is 1.4000/25. The support is 1,3825/45.”
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.
