The Canadian Dollar (CAD) lost ground yesterday after weaker than expected CPI data lifted market speculation that the BoC could cut interest rates at today’s policy decision (13:45 GMT), Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Broader trends remain bearish
“The CAD is regaining much of the ground lost on the data yesterday, however, and should be able to improve a little more if the Bank matches the street consensus for a hold decision. Swaps are pricing in a little more risk of a cut but pricing remains equivocal at best.”
“Policymakers may want more clarity on the fluid tariff situation before deciding to ease policy again. The Bank releases its updated MPR this morning at 10ET and Governor Macklem and Senior DG Rogers will speak at 10.30ET.”
“Solid gains in the USD yesterday following the stalling in the USD decline in the low 1.38 area may signal a short-term low for USD/CAD at least. Broader trends remain bearish, however, which suggests limited scope for the USD to extend gains. Resistance is 1.4000 /25. Support is 1.3825/45.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
English