Market Update on CAD News Perspective and Speculation:
The BOC have cut rates by 50 basis points this year. These cuts were largely due to the lower Oil price which
contributed to technical recession in Canada. Well, since the July cut, Economic data from Canada has been
reasonable.
The Unemployment rate however ticked up to 7.1% in September, marking a 12-month High. GDP readings for
June and July were positive at 0.4% and 0.3% respectively. Core CPI was at 2.1% for the year ending August 31,
above the Target Inflation range mid-point of 2%.
Collectively, these data points suggest the BOC will remain on hold at this meeting. Especially since the Price of
WTI has stabilised in recent months...
In the likely event that rates remain on hold, the market will turn to the Language in the statement and forecasts
in the Monetary Policy report to gain Insight into the Bank's Future Stance. There's a possibility that the BOC will
lean towards a more neutral statement. In that case, the CAD will get a boost.
For more Reading:
Potential Pairs to watch:
CAD/JPY - CAD/CHF : All of them go in the same Direction
USD/CAD - EUR/CAD - GBP/CAD - AUD/CAD - NZD/CAD : All of them go in the same Direction
The BOC have cut rates by 50 basis points this year. These cuts were largely due to the lower Oil price which
contributed to technical recession in Canada. Well, since the July cut, Economic data from Canada has been
reasonable.
The Unemployment rate however ticked up to 7.1% in September, marking a 12-month High. GDP readings for
June and July were positive at 0.4% and 0.3% respectively. Core CPI was at 2.1% for the year ending August 31,
above the Target Inflation range mid-point of 2%.
Collectively, these data points suggest the BOC will remain on hold at this meeting. Especially since the Price of
WTI has stabilised in recent months...
In the likely event that rates remain on hold, the market will turn to the Language in the statement and forecasts
in the Monetary Policy report to gain Insight into the Bank's Future Stance. There's a possibility that the BOC will
lean towards a more neutral statement. In that case, the CAD will get a boost.
For more Reading:
Potential Pairs to watch:
CAD/JPY - CAD/CHF : All of them go in the same Direction
USD/CAD - EUR/CAD - GBP/CAD - AUD/CAD - NZD/CAD : All of them go in the same Direction
Have an INVESTOR Mindset, but Trade like an ENTREPRENEUR