USD/CAD Analysis Ahead Of BOC (Bank Of Canada) Meeting
Amid a regular trading session, markets await today's Bank of Canada meeting. Expected to keep monetary policy unchanged and interest rates at 0.25%, investors will be watching closely for any hints about future movements in this pivotal conference room drama.
After last week saw no extreme economic events bring about changes or announcements that could have implications on financial markets.
In the last meeting of the Bank Of Canada at the end of October, they announced that their monetary stimulus program and purchases on bonds will be coming to an end with the Corona pandemic crisis not resolved yet.
They also hint that they may raise interest rates in April next year. So as long as inflation keeps rising, there could increase higher prices soon enough - which would hurt businesses big time.
In Canada, inflation is rising as it has been for October of every year in recent memory. This time around, there was an annual increase to 4.7%.
The monthly index went up 0.7%, which runs counterintuitively against what many people would expect given historical trends but still maintains its position higher than 1-3%. The output tone should remain professional.
The Canadian economy has seen a fantastic turnaround. The latest data, released last week by Statistics Canada, shows that the job market is on a solid path for recovery, and employment rates are at their highest point in over ten years.
Inflation may have risen, but with these recent developments, consumers can rest assured knowing there will be more jobs for them come January 1st when it celebrates its first full year as Prime Minister.
Income Tax-Free Season starts again, too- meaning even if you're not working or looking for one just yet, this could turn out beneficial.
The markets are now pricing in about five interest rate hikes next year, and the first hike is likely to happen around March. However, with recent data being assessed and Omicron's entry into events on a larger scale than expected. There may soon be an indication that this could come sooner rather than later, even at their meeting today.
The Canadian dollar has been steadily gaining ground this week due to the upward trend in crude prices. Economists will closely monitor this development as it could mean that inflation is on its way, or at least becoming more of a concern for Governor Stephen Poloz. He spoke about tightening last month without providing specifics.
USD/CAD Technical Analysis
Next immediate support and trendline support identifies at the 1.2450 price zone from the present rate. So, the market is expected to test the 1.2450/1.2500 price zone today if the BOC monetary policy is hawkish or unchanged. Canada's economic reports are also performing well.
On the Other hand, 1.2860 is identified as a trend line resistance from the USD/CAD dropped. And swing high is 1.2950 will play as a stop-out area.
CAD/JPY
GBP/CAD
After last week saw no extreme economic events bring about changes or announcements that could have implications on financial markets.
In the last meeting of the Bank Of Canada at the end of October, they announced that their monetary stimulus program and purchases on bonds will be coming to an end with the Corona pandemic crisis not resolved yet.
They also hint that they may raise interest rates in April next year. So as long as inflation keeps rising, there could increase higher prices soon enough - which would hurt businesses big time.
In Canada, inflation is rising as it has been for October of every year in recent memory. This time around, there was an annual increase to 4.7%.
The monthly index went up 0.7%, which runs counterintuitively against what many people would expect given historical trends but still maintains its position higher than 1-3%. The output tone should remain professional.
The Canadian economy has seen a fantastic turnaround. The latest data, released last week by Statistics Canada, shows that the job market is on a solid path for recovery, and employment rates are at their highest point in over ten years.
Inflation may have risen, but with these recent developments, consumers can rest assured knowing there will be more jobs for them come January 1st when it celebrates its first full year as Prime Minister.
Income Tax-Free Season starts again, too- meaning even if you're not working or looking for one just yet, this could turn out beneficial.
The markets are now pricing in about five interest rate hikes next year, and the first hike is likely to happen around March. However, with recent data being assessed and Omicron's entry into events on a larger scale than expected. There may soon be an indication that this could come sooner rather than later, even at their meeting today.
The Canadian dollar has been steadily gaining ground this week due to the upward trend in crude prices. Economists will closely monitor this development as it could mean that inflation is on its way, or at least becoming more of a concern for Governor Stephen Poloz. He spoke about tightening last month without providing specifics.
USD/CAD Technical Analysis
Next immediate support and trendline support identifies at the 1.2450 price zone from the present rate. So, the market is expected to test the 1.2450/1.2500 price zone today if the BOC monetary policy is hawkish or unchanged. Canada's economic reports are also performing well.
On the Other hand, 1.2860 is identified as a trend line resistance from the USD/CAD dropped. And swing high is 1.2950 will play as a stop-out area.
CAD/JPY
GBP/CAD
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