Expectations are for the Bank of Canada to rise interest rates at their key interest rate decision tomorrow at 3pm BST.
Although this hike is widely expected it would not be a great surprise to see a little Canadian Dollar strength to follow this decision, where rates are expected to rise from 1.25% – 1.5%.
This Canadian Dollar strength may not last for too long however, as we will also have the release of the Bank of Canada Monetary Policy statement at the same time and a press conference held by BOC Governor Stephen Poloz and his Deputy Timothy Lane.
Investors and speculators alike will be hanging off of their every word and many analysts believe that we may receive a fairly dovish or softer tone for how they see things moving forward for the Canadian economy.
There are fairly large concerns that although the economy is picking up in Canada and things appear to be running smoothly there is still the outstanding issue of the NAFTA agreement and what Donald Trump could bring to the table in these talks which appear to be moving along extremely slowly.
Should they make a nod to the point that we may not see any further interest rate hikes for a while now then the Canadian Dollar may weaken a little as the afternoon progresses.
The Canadian stock market actually hit an all time high today so the outlook is generally bright but for anyone that has followed Donald Trump’s mission to ‘make America great again’ the key concern is that he goes in hard on NAFTA talks, and Canada have to worry about what kind of deal they end up with.
There are plenty of data releases that will impact this pairing over the week, not to mention updates on U.K politics, so if you have a currency exchange to carry out involving buying Pounds with Canadian Dollars or exchanging Canadian Dollars into Pounds then it is well worth contact us directly.
You can fill in the enquiry form on this page or email me using [email protected] and I will be happy to get in touch to explain how I can help.