BoC preview: More false hope - Rabobank
|"We expect the Bank of Canada to leave the policy rate unchanged at 1.75% on 9th July," note Rabobank analysts previewing tomorrow's meeting.
"This is expected by 22 of the 23 analysts surveyed by Bloomberg and CAD OIS implies almost no chance of a move in either direction at the July meeting."
"The Bank was a little more optimistic in its last meeting compared to back in April and this week’s meeting is likely to see Poloz highlight a stronger backdrop while discussing implications of a potential US ‘insurance cut’ later this month.
It is unlikely that Poloz will discuss rate hikes but wait-and-see will be the name of the game."
"We have maintained the same view since Q1 and we see little reason to change it at this stage – to our mind, the likely next policy move will be a cut in 2020 Q2."
"In terms of USD/CAD, the combination of interest rate differentials and oil prices have pushed the pair lower but there hasn’t been a confirmed close below 1.3070 (the pair has closed below there once) and so we maintain the view that the pair is likely to move back above 1.32."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.