Experts have identified the prospects of the Canadian dollar
According to analysts of the Dutch ING Bank, last week, the mood of the Bank of Canada at the end of the next meeting turned out to be more “hawkish” than previously expected.
“However, if the positive news in the field of monetary policy has already been taken into account in the Canadian currency, the more important events for it were the decline in oil prices and the global risk aversion. Therefore, it is not surprising that now the USD / CAD pair is trading above the level of 1.30,” representatives of the financial institute said.
As for the current week, according to experts, special attention should be paid here to the data of Canada’s GDP for August, which will be released on Wednesday. In addition, a report on the country’s labor market for October will be published on Friday.
“We expect that the rate of economic growth will remain unchanged both in annual and monthly terms, that is, at 2.4% and 0.2%, respectively, which can apparently be considered optimistic news, as Canada continues to extract benefited from strong external demand. It is assumed that unemployment will also remain at the same level – 5.9%,” the specialists of ING Bank said.
“Strong statistical data will contribute to the formation of a “ceiling” for USD / CAD, which will leave the pair below 1.32. Any break above this mark should be accompanied by a significant improvement in the state of the US economy relative to Canada’s GDP,” they added.