Bank of Canada’s meeting

The Bank of Canada will announce its interest rate decision at 17:00 MT time on September 6. Canadian central bank raised its benchmark interest rate by 25 basis points from 0.50% to 0.75% at July meeting. Such step was followed by a significant increase in Canadian dollar’s exchange rate. Canadian economy seems in a good shape and there’s a high possibility of another rate hike by the year-end. At the same time, risks may come from Canada’s neighbor, the United States, as well as the elevated debt of Canadian households.

The most likely scenario is that Canadian regulator will choose a “wait-and-see” approach and stay on hold in September. Still, if the Bank of Canada raises the rate or gives hawkish comments, there may be a positive reaction in the CAD. If the regulator sounds cautious, Canadian currency will suffer a selloff.

Similar

20.07.2018 13:41 Greenback declines on Trump’s remarks on Fed

On Friday, the evergreen buck slumped after Donald Trump had the Federal Reserve heavily criticized for lifting interest rates, although it was still on target for a second winning week…

usd federal reserve trump

19.07.2018 14:31 Corporate interest in currency hedging is spurred by firmer greenback

American multinational companies get down to reevaluating their currency hedging strategies following a leap in the evergreen buck for recent months because the impact of the stronger US currency starts influencing second-quarter corporate profits…

usd forex exchange economy

18.07.2018 14:24 British currency reaches 10-month minimum on dismal British inflation data

On Wednesday, the British pound headed south to the lowest value for 10 months versus the broadly stronger greenback because suddenly dismal British inflation data decreased chances for an August rate lift by Britain’s key financial institution…

gbp forex exchange inflation