Bank of Canada Governor Stephen Poloz said that the Canadian economy has some pockets of weakness but it would take a significant disruption to the Bank of Canada's outlook on inflation for the bank to consider more stimulus. He added that some of the weak data seen recently was part of the bank's expectation that fourth-quarter growth will slow after a strong rebound in the third quarter. The central bank considered a cut last month before holding its policy rate steady at 0.50%.
The Canadian dollar strengthened to a nearly one-week high against the USD on Monday after Bank of Canada Governor Stephen Poloz had indicated a high bar to cut interest rates.
Investors’ focus turns to Vienna OPEC meeting. Key OPEC members appear to disagree over details of the agreement cut output. Non-OPEC producer Russia confirmed on Tuesday it would not attend the OPEC gathering, but added that a meeting between the group and non-affiliated producers at a later stage was possible.
Volatility is set to be high in the oil market in the days ahead. This may translate into higher volatility on the CAD pairs.
We are looking to use EUR/CAD upticks to get short. Our trading strategy remains unchanged – we keep our sell order at 1.4440.
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