During the Asian trading session, the White House economic adviser Larry Kudlow announced the positive progress in phase one trade deal with China.
Big day for the Canadian dollar
Every meeting of the central bank is vital for the currency. Central banks can give comments that will set the currency trend until the next meeting, i.e. for the next month. The Bank of Canada is no exception.
Its meeting will take place on July 11. The interest rate and the central bank’s statement will be released at 17:00 MT time. The BOC Governor will hold a press conference at 18:15 MT time.
This meeting will be very important because the Bank of Canada will have to decide whether to raise interest rates for the second time this year. On the one hand, the BOC prepared the market for a rate hike at its last meeting in June. On the other hand, since then Canadian economic indicators deteriorated. As a result, it will be a real dilemma for the central bank. In such situation of uncertainty, there’s a great potential for surprise and, consequently, for big swings in the CAD exchange rate.
• If the BOC raises the interest rate, the CAD will rise.
• If the BOC leaves the interest rate, the CAD will go down.
The NZD is on a steady rise after the Wednesday strong bullish move, the USD is dropping and the EUR is testing the support level.
The RBNZ kept its interest rate on hold and we are awaiting the releases for the USD and testimony by the Fed Chair Jerome Powell
The Bank of Mexico is expected to cut its interest rate from 7.75% to 7.5% today at 21:00 MT time
Today, the oil prices may move on the release of crude oil inventories at 18:00 MT time.