Will the BOC bring a challenge to the CAD traders?
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.
Evergreen buck fluctuates in a narrow range
On Wednesday, the evergreen buck was trading close to a four-month maximum versus the pack of leading currencies ahead of the two-day Fed gathering.
Notwithstanding the fact that the Federal Reserve is anticipated to keep the benchmark interest rate intact at its political gathering, which is supposed to end today, next month it will undoubtedly face it again, considering evident signs of a possible acceleration in the American economy.
This week, the financial markets will also be focused on the April report on employment in the non-agricultural sector of the United States that might affect the further dynamics of the US currency.
Since the beginning of the year, market participants have observed a jump in sales of the evergreen buck. If future data on jobs in the United States show an increase in wages, it will undoubtedly contribute to the appreciation of the evergreen buck. That’s what some financial analysts pointed out.
Market participants are assured that America is on the verge of cutting taxes and US President Donald Trump's plans, a weird economic stimulus during a period of upbeat economic expansion, can further spur inflation and step up rate surge rates.
The Australian dollar moderately soared after the publication of data on the index of activity in the manufacturing sector of China.
In April, the manufacturing sector in China kept expanding at a faster pace than anticipated, as follows from the latest survey conducted by Caixin/Markit. The index of business activity tacked on to 51.1 in April versus an outcome of March - 51.0. Market experts had hoped for the dive to 50.9.
By the way, it’s worth noting that the indicator remains above the level of 50 that traditionally separates the expansion from the reduction.
Moreover, the April survey shows a further moderate improvement in operating conditions in the manufacturing sector of China.
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Important events this week will bring us
This week will bring us central bank statements and important economic indicators related to the main currency pairs. Read on to see which ones will be affected.
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