The Canadian dollar reached the price level of 1.31 and is to end less than 1, 30 after calling the US dollar as a safe haven has been reduced following the election results in Japan will trigger a new revival and the rise of Theresa May as the only candidate for the British Prime Minister of the markets calmed post Brexit.
Bank of Canada (BoC) will be grateful for a more normal environment when it releases the interest rate statement on Wednesday July 13 at 10:00 AM EDT. The central bank is expected to keep rates unchanged at 0.50 percent. The goal for CAD traders will be the publication of the quarterly report on monetary policy. As there is little action expected the BoC in the third quarter, the Governor Stephen Poloz could try to use peaceful language to downward pressure on the Canadian dollar in an effort to boost exports.
The BoC has been proactive in 2015 with two rate cuts to come from the oil price fall. This year, the central bank was more patient amid rising macro headwinds. There are some factors that are beyond Canada's control, such as energy prices and market uncertainty triggered by political events in Europe that led to a depreciation of the CAD. The biggest factor supporting the CAD was the apparent stability of US growth and low exposure to British trade.
The USD / CAD has lost 0.662 percent in the last 24 hours. The pair is trading at 1.3027 before the release of the rate statement by the Bank of Canada on Wednesday. New at the beginning of the trading week put the USD on the back foot as risk aversion decreased and with it the attractiveness of the dollar as a safe haven. Canadian employment diverge US employment sector of the elastic, so a full on CAD rally is not expected given the negative outlook on the economy depends on resources.
The West Texas oil increased by 1.06 percent over the past 24 hours. The energy price is trading at $ 45.59 after crude rebounded thanks to the weakness of the USD. The Organization of Petroleum Exporting Countries (OPEC) has lowered its forecast for global growth to 3 percent in 2017, citing the impact of Brexit vote will have on global growth. OPEC still maintains its forecast of world demand at 1.2 million bpd, which is 300,000 higher than the average of 10 years.
The biggest indicator of CAD this week will be the release of the report on monetary policy by the Bank of Canada (BoC). The central bank has issued warnings about rising household debt and tried to limit the number of new mortgages that low rates have led prices higher housing that would not make a reduced rate their favorite option . Global macroeconomic headwinds forced the BoC in a corner where the expectation seems to be the only option. . Meanwhile the effects of the Canadian government stimulus program announced in March and patience with the Fed that carries its own caution regarding global growth rates is sober
events CAD to watch this week:
Wednesday, July 13
10:00 CAD BOC monetary policy Report
10:00 CAD BOC rate Statement
10:00 CAD Price night
11:15 CAD BOC Press Conference
Thursday, July 14
8:30 CAD NHPI m / m
Friday, July 15
8:30 CAD manufacturing sales m / m
* All EDT
hours for a full list of events planned for the visit of the foreign exchange market the economic calendar MarketPulse
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