- Analytics
- News and Tools
- Market News
- USD/CAD: BOC rate cut this week – DBS
USD/CAD: BOC rate cut this week – DBS
USD/CAD found support around 1.3450 ahead of the Bank of Canada’s third consecutive rate cut expected this week, DBS’ Senior FX Strategist Philip Wee notes.
BOC to pause after three consecutive rate cuts
“On September 4, we anticipate the overnight lending rate to fall another 25 bps to 4.25%. CPI core trimmed inflation extended its decline inside the official 1-3% target to 2.7% YoY in July, its lowest level since April 2021.”
“On September 6, consensus expects the August unemployment rate to keep rising to 6.5%, its highest level since January 2022. The Trudeau government has moved to protect Canadian jobs by halving the share of low-wage temporary foreign workers that employers can hire to 10% of their overall workforce, effective September 26.”
“However, Canada’s GDP growth surprised by accelerating a third quarter to an annualized 2.1% QoQ saar in 2Q24 vs. the 1.8% consensus; first quarter growth was also revised to 1.8% from 1.7%. Hence, we remain alert to any inclination by the BOC to pause after three consecutive rate cuts.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
