Wednesday, October 11, 2017

USDCAD: today a decision on interest rates in Canada

USD / CAD: today a decision on interest rates in Canada

TRADING RECOMMENDATIONS

Today (at 14:00 GMT) Bank
Canada makes a decision on interest rates. Now the interest rate
Canada is at a level of 0.5%, and, according to market participants, the Bank of Canada,
It is likely to be inactive in "During the next few years" in that
direction. growth in housing prices in some regions of Canada, as well as a record
Household debt levels will constrain the Bank of Canada on mitigation
monetary policy, despite retreating oil prices and other
weak macroeconomic indicators of the country's economy.


After having been on Friday
published data on the US labor market, including a strong indicator of the NFP,
US dollar rose to a pair of USD / CAD. The number of jobs outside agriculture in the USA
(The NFP) in June increased by 287,000 (vs. 175,000).
The unemployment rate, though increased to 4.9% (vs. 4.8% and 4.7% in May)
Nevertheless, it remained stable below 5.0% for several months.


At the same time, Canada also
It was published rather weak data on the labor market in this country. Level
Unemployment has fallen (6.8% against 6.9% in May) in Canada in June. However,
According to economists, the decline in the number of people who are looking for work. reduction
the number of jobs in Canada in June amounted to 700 against the expectation that
the number of jobs will grow by 5000.


However, even if the Bank
Canada will leave today, the interest rate in the country unchanged, trading in
Canadian Dollar Expected volatility during this period.


However, in general, a couple of USD / CAD
more strongly influenced by the dynamics of the US dollar and oil prices, which
recently showing signs if not a reversal of the upward trend, the
apparent slowdown.


Bearing in mind also, albeit more
cautious, but still continued to tighten monetary
Fed policy and stable data on the state of the US economy, the pair USD / CAD will
tends to increase in the medium term.


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