Tomorrow there is a rate announcement on both sides of the border, however the central banks will not be in sync. The U.S. Federal Reserve is expected to cut rates by 25 basis points while possibly putting further cuts on hold as U.S. equitis are reaching all-time highs. The Bank of Canada will not cut rates and will likely state that there will be no cuts in the near future, but it will keep a close eye on the economy just in case. Since the BoC announcement is at 7:00 am PST and the Fed is at 11:00 am, don’t expect the USDCAD to move much till the Fed announcement is released. Both central banks are watching the ongoing China-U.S. trade talks which are starting to show a glimmer of hope, if the talks do make any headway then expect the USDCAD to drop below 1.3000 level, and trade closer to 1.2800.
Currently Close Range
USDCAD 1.3068 1.3055 1.3042-1.3073
EURCAD 1.4519 1.4491 1.4456-1.4528
GBPCAD 1.6844 1.6792 1.6726-1.6853
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