The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
How will the Canadian dollar react to the BOC meeting?
The Bank of Canada (BOC) will release its statement and publish the official rate on September 4, at 17:00 MT time.
The changes to the interest rate are not expected, but we will be looking for the clues on the next steps by the bank. Some of the analysts expect the BOC to throw the hints on the possibility of a rate cut, citing the trade uncertainty between the US and China and worsened economic outlook. Thus, any dovish comments will pull the Canadian dollar down. So, let’s wait for the outcome of the meeting.
• If the Bank of Canada is hawkish, the CAD will rise;
• If the Bank of Canada is dovish, the CAD will rise.
The Federal Open Market Committee (a department of the Federal Reserve) will post its statement and an update on the interest rate on January 27 at 21:00 MT time
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The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.