BOC Preview: It will be difficult for this meeting to serve as a catalyst for further CAD strength – BofA

Anil Panchal FXStreet

Ahead of Wednesday’s the Bank of Canada (BOC) monetary policy meeting, the Bank of America (BofA) came out with its event preview suggesting a challenge to the further Canadian dollar (CAD) strength.

“We expect the Bank of Canada (BoC) to remain on hold on 9 June, waiting for the economy to get out of its current rough patch and for inflation to eventually subside. That is, we do not expect the Bank to change either its policy rate or its pace of bond purchases at this time," said BofA analyst.

The US bank also said cites downside risk to the BOC’s statements while citing hopes of the Canadian Treasury yields’ weakness.

Read: USD/CAD struggles to defend 1.2100 with eyes on BOC

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD remains weak near 1.1800

EUR/USD rapidly fades Tuesday’s uptick and resumes its weekly retracement, challenging the 1.1800 support at the end of the NA session on Wednesday. The pair’s drop comes in response to extra gains in the US Dollar. Moving forward, the ECB meets on Thursday and is seen leaving its policy rate unchanged.

GBP/USD churns near 1.3700 ahead of BoE rate call

GBP/USD remains trapped in a near-term cycling pattern on Wednesday, continuing to churn aimlessly between 1.3700 and 1.3650. Cable traders are unlikely to pick a meaningful direction until after the Bank of England’s latest interest rate decision, due during Thursday’s London market session.

Gold stays offered below $5,000

Gold is back under pressure on Wednesday, slipping below the $5,000 mark per troy ounce as Wednesday’s session draws to a close. The pullback comes amid renewed strength in the US Dollar alongside mixed moves in US Treasury yields across the curve.

Dogecoin plummets as retail investors exit amid broad market sell-off

Dogecoin holds near support at $0.1000 at the time of writing on Wednesday, as bears tighten their grip on assets across the crypto market. The leading meme coin remains on the back foot, weighed down by risk-off sentiment, low retail activity and weak technicals.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Ripple stabilizes amid mixed signals as ETF inflows resume despite low retail activity

Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.