Canadian dollar: Next week, all eyes will be on the inflation data, which is expected to cool down further to as low as four percent
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Recently FXMAG.COM has asked SquaredFinancial analyst, Nour Hammoury, for a comment on Bank of Canada decision.
FXMAG.COM: Could you please comment on the BoC decision and its monetary policy report after it's released?
Nour Hammoury (SquaredFinancial): It is clear that the Bank of Canada (BoC) has reached the peak of the main interest rate at 4.5%, as inflation has dropped back to 5% from its peak of 8% in June of last year. While the bank is standing ready to raise the interest rate if needed, there is currently no reason to do so.
The question going forward is how long the bank can maintain rates at this level before cutting them again
Nour Hammoury (SquaredFinancial): The question going forward is how long the bank can maintain rates at this level before cutting them again. Next week, all eyes will be on the inflation data, which is expected to cool down further to as low as four percent. If this happens, markets will anticipate the first possible rate cut before the end of this year. As a result, the recent rally in the Canadian Dollar may come to an end, and the key level to watch is USDCAD 1.33 ahead of the inflation data release next week.
