We await the rate statement by the Bank of Canada on Wednesday

What will happen?

The Bank of Canada (BOC) will publish the rate statement and the update on the interest rate on April 21, at 17:00 MT time. The statement contains information about interest rates and commentary on the economic outlook. While we don't expect any changes to the interest rate of 0.25%, the bank may provide insights that may change its forecast for future rate hikes. We expect the bank to pay particular attention to the stabilization of the labor market, as the employment change for March greatly outperformed the forecasts (+303.1K vs. +101.5K). Another interesting thing the bank may drag investors' attention to is the recent business outlook survey. According to it, the firms expect inflation to exceed the central bank's target range. These factors may indicate an earlier change in the rate.

How to trade on the BOC Monetary Policy Report?

We recommend you pay attention to the regulator's comments on the economic outlook (employment and inflation levels) and forecasts for the rate hike.

If the BOC provides an optimistic outlook, expect the strength of the CAD;
In case of negative comments, the CAD will fall.

Instruments to trade: USD/CAD, EUR/CAD, CAD/JPY

Check the economic calendar

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