Bank Of Canada Headed For The Status QUO
The National Bank of Canada | May 24, 2017 08:48AM ET
For the fifth day in a row, crude oil prices (WTI) rose, bringing with them currencies from commodity-based economies such as the CAD, AUD and the NZD. The roots of this price rally lie in investors’ anticipation that a new round of oil output cuts will be announced by producer nations on Thursday in Vienna. Markets appear rather upbeat, meaning that any disappointment could lead to a major reaction in prices of energy-related assets.
At 10 a.m. today, the Bank of Canada (BoC) will announce its key rate decision. According to our economists, we can expect the BoC to bring up NAFTA renegotiations and the real estate market to justify a cautious status quo. However, it will be interesting to analyze the importance placed on recent Canadian economic indicators, which have generally surpassed expectations.
For USD sellers, before the BoC decision, placing orders at slightly higher levels than the current ones could prove an attractive strategy. Have a great day! Julien Duquette
Range of the day: 1.3425 – 1.3615
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