Bank of Canada decision up next
USD/CAD is down for the seventh consecutive day as the US dollar comes under pressure on a dovish Fed.
But will the Bank of Canada match the dovish shift? We will find out at the top of the hour with the latest BOC decision. Note that this decision also includes the MPR and a press conference at approximately 11:15 am ET.
The key part of the BOC statement is the final paragraph. It currently has a strong hawkish bias, expect that to be dialed down.
"Weighing all of these developments, Governing Council continues to judge that the policy interest rate will need to rise into a neutral range to achieve the inflation target. The appropriate pace of rate increases will depend on a number of factors. These include the effect of higher interest rates on consumption and housing, and global trade policy developments. The persistence of the oil price shock, the evolution of business investment, and the Bank's assessment of the economy's capacity will also factor importantly into our decisions about the future stance of monetary policy."
As for USD/CAD, it's approaching the 100-dma and the December lows, which are both near 1.3175.
