What will happen? Canadian m/m GDP will be announced at 15:30 MT (GMT+3) on Thursday, September 30…
Will the BOC act amid an improving outlook?
What will happen?
The Bank of Canada will publish a rate statement and update on the interest rate on Wednesday, at 17:00 MT time. The statement normally contains commentary about the economic conditions and insights into further monetary policy decisions. Until now, the bank has made no major changes to the monetary policy since the end of the lockdown. As the outlook of the Canadian economy is improving, analysts project a shift in the central bank’s tone. If it’s true, the BOC will hike the interest rate earlier than in 2023.
How to trade on the BOC rate statement?
Due to analysts' predictions, traders need to pay particular attention to the changes made in the statement. If analysts’ predictions are correct and the Bank of Canada expresses readiness for a rate hike before 2023, the Canadian dollar may strengthen.
- Remember that a hawkish central bank pushes the CAD up;
- A dovish BOC pulls the CAD down.
Instruments to trade: USD/CAD, EUR/CAD, CAD/JPY
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).