CAD Currency Analysis

Currency Sentiment - Bullish 


The BoC hiked rates by 25bps to 1.50% in July and forecast further rate hikes would be appropriate to maintain solid growth and inflation. BoC Gov Poloz signalled that if economic data continued to print positively the bank would be ready to raise rates accordingly.


The BoC has also sounded less cautious on raising rates whilst NAFTA talks between the US, Canada and Mexico continue to drag on. Despite the threats by Trump to impose tariffs on Canadian exports to the US should he not get a "fair" trade deal, the BoC has changed its tone in recent statements to that of one where the bank sees fit to raise rates if the economy is performing well and less to do with how trade negotiations are developing with the US.


For more details please visit the Central Bank Monitor page for details on the canadian economy.