Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    Bank of Canada Preview: Dovish comments are likely to put pressure on the CAD – Commerzbank

    Source Fxstreet
    Jan 24, 2024 09:43

    The Bank of Canada (BoC) holds its first meeting of the year today. Economists at Commerzbank analyze Loonie’s outlook ahead of the policy announcement.

    Will the BoC continue to wait and see?

    The actual interest rate decision is unlikely to be particularly exciting at this stage. Instead, the BoC is likely to leave rates unchanged. This should not really surprise the market, even though a small residual probability of a first rate cut is currently priced in.

    If the BoC's statement and Governor Tiff Macklem's subsequent meeting with reporters can reassure the market of its continued cautious approach, the CAD should benefit slightly given current market expectations.

    However, there is of course a risk that the BoC will not fight market expectations very vigorously. Simply because it knows that it is likely to cut rates in the coming months. Dovish comments are likely to put pressure on the CAD. Although this is not my base case, the probability of this happening is much higher than zero given the advanced state of the interest rate cycle. Anyone who needs to manage CAD risks should keep this in mind.

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    RBNZ’s Hawkesby: Policy is going to stay restrictive for some time yetThe Reserve Bank of New Zealand (RBNZ) Deputy Governor Hawkesby said on Friday that interest rates in New Zealand need to stay restrictive for some time to ensure inflation expectations become fully anchored again while adding that the central bank was not in the position to consider cutting rates.
    Source  Fxstreet
    The Reserve Bank of New Zealand (RBNZ) Deputy Governor Hawkesby said on Friday that interest rates in New Zealand need to stay restrictive for some time to ensure inflation expectations become fully anchored again while adding that the central bank was not in the position to consider cutting rates.
    placeholder
    German Retail Sales drop 1.4% YoY in January vs. -1.5% expectedGermany's Retail Sales fell 0.4% MoM in January, slowing from a 1.6% decline seen in December, the official data released by Destatis showed on Thursday.
    Source  Fxstreet
    Germany's Retail Sales fell 0.4% MoM in January, slowing from a 1.6% decline seen in December, the official data released by Destatis showed on Thursday.
    placeholder
    Fed on course to begin lowering rates at the June FOMC meeting – ABN AmroThe FOMC has kept rates on hold since its last rate hike in July.
    Source  Fxstreet
    The FOMC has kept rates on hold since its last rate hike in July.
    goTop
    quote