The Bank of Canada has decided on Wednesday to keep its benchmark lending rate steady at one per cent, pausing after two small hikes earlier this year. In The meantime, learn more from the 7 December USDCAD Fundamental Drivers Outlook.
7 December, OctaFX – The Bank of Canada (BoC) yesterday maintained its target for the overnight rate at 1 per cent. It stated Wednesday it has decided to keep its target for the overnight rate right where it is, while rate hikes in July and in September continue to work their way through the economy.The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
The global economy is evolving largely as anticipated in the Bank’s October Monetary Policy Report (MPR). In the United States, growth in the third quarter was stronger than forecast but is still expected to moderate in the months ahead.
Over in North America, the US Department of Labor will report on initial jobless claims at 13:30 GMT. The number of Americans filing for first-time unemployment benefits is expected to edge up slightly to 240,000 from 238,000.
Later in the day, the Federal Reserve will release the latest consumer credit change report for October.
7 December USDCAD Fundamental Drivers Outlook
The North American cross was trading steadily at 1.2800 on Thursday following a sharp up-move during the previous session. The Canadian dollar lost momentum on Wednesday after the Bank of Canada (BOC) appeared hesitant over future rate hikes. Economic data will drive the pair in the final two sessions of the week.
This article about 7 December USDCAD Fundamental Drivers Outlook should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.
Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.