Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Canadian dollar will go up on further interest rate lifts
Over the coming year the Canadian dollar is predicted to tack on, as a Reuters survey disclosed on Thursday. The assumption is built around the fact that Bank of Canada interest rate lifts as well as broad pressure on the evergreen buck will compensate uncertainty regarding the future of the NAFTA trade pact.
The survey of more than 40 foreign exchange experts foresaw that the Canadian currency is going to rally up to C$1.250 versus the US dollar just in one month. Following a period of stabilization, in a year the Canadian major currency is supposed to rise to C$1.230.
Canada’s higher interest rates along with positive economic data are expected to assist the country’s major currency, as some financial experts stressed. In addition to this a reduction of the latest fluctuation in the stock market can lend support too.
On Friday, the Canadian dollar rebounded more than 2% since equities started tumbling abruptly. The previous week Loonie demonstrated its strongest outcome for more than four months sticking to C$1.225.
Commodity-linked currencies are used to underperforming when equities go down. It’s because of the signal sent by it on prospects for economic surge worldwide. As a matter of fact, crude turns to be one of the country’s crucial exports.
In January, the Bank of Canada had its benchmark interest rate lifted to 1.25%. That’s its third lift since July, and it drops a hint that the Canadian economy’s approaching its full capacity.
In 2018, money markets expect two further lifts, although economic data will probably require staying sturdy enough to back extra policy tightening.
Loonie is expected to be extremely vulnerable to any dismal data the months ahead. Market experts suggest the Canadian dollar will dive to C$1.27 just in one month and then in a year get back to C$1.23.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.