What trend is expected to continue with the USDCAD pair as the BOC raises interest rates? The 17 January USDCAD Fundamental Drivers Analysis reveals it.
17 January, OctaFX – Monetary policy will be in the headlines on Wednesday as the Bank of Canada (BOC) gets set to vote on interest rates. The BOC is expected to continue raising interest rates thanks to a firming domestic economy.
The BOC rate decision and monetary policy report will be unveiled at 15:00 GMT. Policymakers will issue a press conference at 16:15 GMT. Canada’s path of rate normalization has been much more aggressive than virtually all of its advanced industrialized peers, including the Federal Reserve.
However, uncertainty over the future of NAFTA could derail the central bank’s outlook. NAFTA refers to the North American Free Trade Agreement, which has governed bilateral trade between Canada, the United States and Mexico since 1994.
17 January USDCAD Fundamental Drivers Analysis
The Canadian dollar has been on an upward trajectory for the past four weeks, sending the USD/CAD to its lowest level since September. The USD/CAD was last seen trading at 1.2441, where it was up 0.1% from the previous close. The pair remains on a downward path, a trend that is expected to continue as the BOC raises interest rates.
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