USD/CAD Daily Forecast – 1.3525 on Target Ahead of BoC Rate Decision
Significant Economic Events
Traders stay in anticipation over the Bank of Canada (BoC) interest rate decision. Notably, the central bank had lowered the rates twice in this year to cope with the rising economic sluggishness. Anyhow, this time, the market expects the BoC to keep the interest rates unchanged at 1.75%.
For Canada, the Inflation, Retail Sales, and GDP data had displayed some pleasing figures, this time. Hence, the BoC Governor Poloz might prefer to save the firepower for the upcoming quarters.
The policymakers at BoC might also look for the Fed’s actions in this regard that acts as a major lead for other central banks. However, recently, Reserve Bank of Australia (RBA) and Bank of Japan (BoJ) had already decided to hold rates this time, awaiting Fed’s call.
Meantime, US and Canadian Trade data release event might also catch market attention in the middle of the day. Noticeably, the Street analysts expect the US July Trade Balance to report $-53.5 billion vs. previous $-55.2 billion. On the other hand, the consensus estimates the Canadian July International Merchandise Trade to record $-0.40 billion vs. prior $0.14 billion.
Trading Central – USD/CAD
EUR/USD stabilizes below 1.10 amid USD weakness, ahead of Lagarde
EUR/USD is trading close to 1.10, off the lows. The dollar remains on the back foot after weak ISM Manufacturing PMI and mixed Fed comments. ECB President nominee Lagarde is set to speak.
Trading Central – EUR/USD
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