CANADIAN DOLLAR FORECAST TO SOUR AS BOC SHIFTS MONETARY POLICY STANCECAD value outlook grows more and more much less optimistic w
CANADIAN DOLLAR FORECAST TO SOUR AS BOC SHIFTS MONETARY POLICY STANCE
- CAD value outlook grows more and more much less optimistic with the Canadian Greenback in danger owing to a better chance that the Financial institution of Canada will quickly lower rates of interest
- The October BOC Financial Coverage Report revealed the central financial institution’s lackluster forecasts for the Canadian economic system and likewise underscored main draw back dangers to its outlook
- The Canadian Greenback stands to drop if upcoming economic data on Canadian employment, consumption or housing disappoints and prompts an increase in BOC fee lower expectations
The Financial institution of Canada (BOC) stays one of many final standing central banks to keep away from chopping rates of interest this yr. Regardless of persistent slowing global GDP growth headwinds, the Canadian economic system has remained resilient and largely supported the BOC’s agency financial coverage stance. In flip, the Canadian Greenback (CAD) has strengthened significantly all year long and is the highest performing G10 currency towards the US Dollar with a year-to-date spot return of roughly 3.5%.
That might quickly change, nonetheless, if the BOC comes below stress to capitulate and be a part of the dovish central banks. On steadiness the Canadian Greenback Forex Index is up 3.1% thus far for 2019 as of the November 6 shut, however CAD value motion is beginning to present indicators of deteriorating.