Dollar Canada restless before the important decision of the Bank of Canada (BoC). Any message that the Bank might start considering rate hikes”fine adjustment‘will hurt loonreported Scotiabank economists.
Solid growth data in the United States to support the dollar and equities
“In Canada, the focus will be on political decisions BoC Wednesday, the Monetary Policy Report, and Governor Maccklem’s press conference afterwards. A 75 basis point increase is more or less fully appreciated. This will bring the overnight target level to 4.00%. Any message that the Bank might start considering rate hikes”fine adjustment‘ will weaken the CAD. Whether the Bank’s outlook and still-high inflation allow the governor to make those concessions at this point remains to be seen. »
“It’s been a busy week for U.S. data releases. Thursday’s third quarter GDP tracker report is likely to be the highlight of the week. The GDP tracker shows a pretty strong quarter for the economy. US after negative first and second quarter impressions Consensus forecast calling for 2.1% (SAAR) Fed’s Atlanta GDP forecast is now 2.8/2.9% Solid growth would be positive for the USD and interest rates and could weigh on equities (damage the CAD).”
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