Home News Oil drops hit the Loonie ahead of BOC interest rates!

Oil drops hit the Loonie ahead of BOC interest rates!


The USDCAD After a Fed that is relatively hawkish, the exchange rate strengthened. This will likely push interest prices above 5% In 2023, after a series strong economic data from the US. Data on Friday showed that the US economic growth was greater than anticipated. 263K There were no jobs in November while the unemployment rate remained constant at 3.7%. Wages jumped 5.2% Even though tech companies have lost thousands of jobs, Data showed on Monday that the PMI for non-manufacturing rose in November.

Today is the 8th and Final Rate Setting Meeting for the BOC in 2022 (December 7This will be a week prior to the Fed and ECB meeting on December 14th and 15, respectively. The rate decision will then be made at 12:00 GMT A press conference will be held by Governor Macklem at 16:00 GMT. This will be the most important catalyst for USDCAD’s movement. According to the market, the central bank will raise its interest rates by 0.50% To 4.25%. The decision was made at a time when Canadian inflation had been high. According to Statcan, the country’s annual inflation rose to 6.9% Due to rising mortgage and gasoline prices, October was a difficult month.

Crucially, the BOC’s decision comes at a time when Canada’s yield curve has fallen to its lowest level since the 1980s. Spread between 10- and 2-year bonds

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