The Bank of Canada (BoC) continued on its steepest rate-hiking path in decades with a  75 bps hike. The move was in line with expectations and lifts the overnight rate to 3.25%. Meanwhile, the move in CAD was very modest. Economists at Commerzbank expect the loonie to remain under pressure in the near-term.

No surprise from the BoC

“The 75 bps rate hike to now 3.25% had been generally expected and also a hawkish statement had clearly been largely priced in. The loonie was unable to benefit in particular.”

“As a result of weaker economic data and the prospect of a moderately active BoC, CAD will probably continue to struggle against USD in particular once increasing (global) recession fears affect market sentiment.” 

“Medium-term, the loonie should manage to benefit more from its advantages though.”

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD resurfaces from 0.6670 as Australian inflation drops to 6.9%

AUD/USD resurfaces from 0.6670 as Australian inflation drops to 6.9%

The AUD/USD pair has picked bids around 0 .6670 as the Australian Bureau of Statistics has reported a decline in the monthly Consumer Price Index (CPI). The Australian CPI has landed at 6.9% lower than the expectations of 7.4% and the prior release of 7.3%.

AUDUSD News

EUR/USD closing in most bullish month in 12 years ahead of Eurozone inflation, Federal Reserve talk

EUR/USD closing in most bullish month in 12 years ahead of Eurozone inflation, Federal Reserve talk

EUR/USD remains pressured around 1.0330, after printing a two-day downtrend, as it prepares for the big day during early Wednesday in Asia. The major currency pair stays on the way to posting the biggest monthly run-up in 12 years.

EUR/USD News

Gold traders await the Federal Reserve Chair Jerome Powell

Gold traders await the Federal Reserve Chair Jerome Powell

Gold prices climbed on Tuesday even as the US Dollar and bond yields rose but were capped as traders get set for the Federal Reserve's chair, Jerome Powell, who will speak on Wednesday. China and the Coronavirus spread are keeping markets at bay. 

Gold News

Arguing the case for a Cardano price pullback to $0.35

Arguing the case for a Cardano price pullback to $0.35

Cardano price has produced four lower highs throughout the month, with three connected by a recently breached trendline. A hurdle above $0.322 could create an additional 12% upswing. A four-hour candlestick close below the $0.304 level would invalidate the bullish potential.

Read more

Stock markets recovered from China uncertainty, Fed's Powell next

Stock markets recovered from China uncertainty, Fed's Powell next

S&P 500 recovered from China uncertainty, keeping right below 4,000 until Williams and Bullard reiterated sticky inflation and high rates views. Reiterated – not brought fresh and unexpected information. Still, stocks and much of the rest declined sharply.

Read more

Forex MAJORS

Cryptocurrencies

Signatures