CAD

[Jon Steeler]

Will the BoC cut rates? and will this see a drop in the CAD?

[Djamel Brahimi]

Whether the Bank of Canada will cut rates or not is impossible to know for sure. However, their last statement did open the door for a rate cut or rate cuts. So, in light of that it means that the markets will start to price in a higher chance of a rate cut, and we can already see that the CAD has lost some ground against other currencies. 

Should the BoC come out with a more hawkish stance, we will see the reverse and the CAD will strengthen again.

That is not the only thing that is weakening the CAD right now. We can also put some of it down to the weaker oil prices of late. 

[Sam Farrah]

Just wanted to add to this. I believe that the pressure is starting to mount on the bank of Canada and that they may indicate a rate cut is looming at their next meeting. Could be time to start looking to short the CAD?

[Ryan Hall]

Hello Jon, thanks for asking the question.

When it comes to its recent developments, the Canadian Dollar didn’t change much against USD, recuperating from a recent 10-day low thanks to higher oil and stock prices, as well as a record job increase.

The country’s economy got boosted by 952,900 new jobs in June, most of which are in the service industry, as companies restarted their operations after the coronavirus lockdown.  This figure surpassed the economists’ expectations of 700,000 jobs.