Trading the News: Bank of Canada (BoC) Interest Rate Decision
The Bank of Canada (BoC) interest rate decision may sap the recent rebound in the USD/CAD[1] exchange rateas the central bank is widely expected to deliver a 25bp rate-hike.
The BoC may continue to normalize monetary policy in the second-half of 2018 as ‘activity in the first quarter appears to have been a little stronger than projected,’ and Governor Stephen Poloz and Co. may continue to prepare households and businesses for higher borrowing-costs as ‘developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target.’
In turn, a 25bp increase in the benchmark interest rate paired with a hawkish policy statement may trigger a bullish reaction in the Canadian dollar[2], but a dovish rate-hike may fuel the recent rebound in USD/CAD as market participants scale back bets for a more aggressive hiking-cycle. Sign up & join DailyFX Currency Analyst Christopher Vecchio LIVE[3] to cover the BoC interest rate decision.
Impact that the BoC rate decision has had on USD/CAD during the last meeting
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
MAY 2018 |
05/30/2018 14:00:00 GMT |
1.25% |
1.25% |
-128 |
-136 |
May 2018
