US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
Will the Bank of Canada support the CAD?
The Bank of Canada will publish its monetary policy statement and make the rate announcement on May 29, at 17:00 MT.
The central bank won’t make changes to the current interest rate, which is set at 1.75%. However, the BOC governor Stephen Poloz may throw some hints on the possible changes to the current monetary policy. Last time, Mr. Poloz was more positive about the economic outlook of the country, than during the previous meetings. His tone supported the loonie. If he provides any hawkish hints this time, the CAD will rise.
• If the BOC is hawkish, the CAD will go up;
• If the CAD is dovish, the CAD will go down.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.