Today CAD will hold the world’s attention at 13:00 GMT as the Bank of Canada announce their most recent interest rate decision. The consensus is that rates will be kept on hold at 0.5% following a recent run of strong data for the Canadian economy to offset the volatility in the oil market and global marketplace in general.
CAD has been strengthening against the US Dollar ahead of the decision, and has halted the recent gains made on GBP/CAD which has been relatively stable since UK markets opened.
The decision itself seems to be all but given with the Canadian Dollar already strengthening. However, one bank, National Bank Financial, has become the first major institution to call for a rate cut in the wake of global market turmoil. We may be surprised, but with an election cycle on the horizon it is unlikely the bank will take any preemptive course here – having already slashed rates recently.
We will know more about the BOC’s thought processes once they release their rate statement following the announcement. Until then it seems CAD strength will accumulate throughout the morning. Those with CAD to buy in the short term should look to move ahead of the event. For a free quote on your transfer with commercial rates of exchange call me on +441494 787 478 and quote this article. Alternatively email me on [email protected] to be kept up-to-date with any relevant information which will emerge following the announcement. Tom Holian