The Canadian Dollar has dropped to record lows when compared to the US dollar. We expect this movement to continue in the days to come. The Bank of Canada continues to retain a cautious outlook despite the date surprises. If there is a drop in the oil prices, it will weaken the Canadian dollar further. However, with the U.S missile strike on Syria, there are chances for the oil prices to rise further. We expect the Bank of Canada to roll in some measures to boost the growth of CAD.

The Bank of Canada Governor Stephen Poloz recently said that he is more worried about the risks and does not want to increase the rates at the moment as it may lead to recession. However, it is to be noted that the inflation rates came at 2.1% against the Bank of Canada’s inflation target of 2%. GDP continued to show a positive growth and came at 1.9 percent.

Governor Poloz said that “It would be off to forget about all those downside risks just because a couple of data points came in a little better than expected. This sentiment is likely to be reiterated in the upcoming BOC meeting on April 12th.” From a trading standpoint, we expect the CAD shows some improvement in the days to come.

The information and views expressed herein are NoaFX’s opinion about the market and no responsibility (or liability) is accepted for any factual errors or trading decisions made by traders based on this opinion. The contributor might be involved in trading or hold some positions in the market and accepts no liability arising out of the above information.

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