The USDCAD is still range bound and will likely stay that till Wednesday when the Bank of Canada makes its announcement. Expectations are for no rate change however, analysts will be looking for what the BoC has to say. Markets are worried that Canada is deeply exposed to the U.S.-China trade spat. The Canadian yield curve is inverted, with three-month government debt yielding more than 10-year notes, suggesting fear the dispute will weigh on global growth. The rates market is pricing in 17 basis points of central bank easing through the next 12 months, according to trading of forward contracts. As a result, the BoC really cannot do much until these tensions have been resolved.
Currently Close Range
USDCAD 1.3443 1.3437 1.3430-1.3453
EURCAD 1.5051 1.5051 1.5031-1.5075
GBPCAD 1.7038 1.7083 1.7027-1.7129
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