Canada will post Retail Sales and Core Retail Sales on December 21, at 15:30 GMT+2.
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
What will happen? BOC will report its Monetary Policy statement at 17:00 MT (GMT+3) on Wednesday, October 27…
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.