Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CAD Could Rebound Wednesday With Upbeat Comments From BoC

Published 2017-10-23, 09:52 a/m
Updated 2017-05-14, 06:45 a/m

The loonie lost a little over 1% last week due to uncertainty surrounding NAFTA, but also due to the lack of inflationary pressure in Canada and disappointing consumer spending data. Another consequence is that the chances that Bank of Canada Governor Stephen Poloz will announce an additional key rate increase this Wednesday are practically nil, while the outlook for December is mixed.

Although at present the context is looking rather difficult for the CAD, it’s important to keep in mind that upbeat comments from the BoC this Wednesday could quickly lead the wind to shift. After all, one poor showing in Retail Sales is not a surefire sign of a trend.

Meanwhile in Japan, Prime Minister Shinzo Abe and his Liberal Democratic Party easily won their election with more than two-thirds of the seats in parliament. For markets, this victory eliminates a measure of uncertainty regarding the country’s economic future as Abe can now continue with his plan. It remains to be seen whether he will keep his electoral promise to toughen the tone considerably regarding North Korea.

Stéphane Goulet

Range of the day: 1.2575 – 1.2680

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.