How would the US dollar trade against the Canadian Dollar today after the Bank of Canada raised interest rates? The 18 January USDCAD Fundamental Analysis answers.
18 January, OctaFX –The US government will issue fresh real estate data at 13:30 GMT with a report on housing starts and building permits. Starts are forecast to decline slightly in December to a seasonally adjusted annual rate of 1.275 million units. Permits, which are a bellwether of future construction plans, are expected to fall to 1.29 million.
The Labor Department will also issue its weekly jobless claims report at 13:30 GMT. The number of Americans filing for first-time unemployment benefits is expected to fall by 11,000 in the week ended 13 January to reach 250,000.
In currencies, the US dollar bounced back on Tuesday, rising 0.4% against a basket of world currencies. However, the greenback is down 1.4% since the start of the year and faces more downside risk now that central banks all over the world are gradually tightening the screws on monetary policy.
18 January USDCAD Fundamental Analysis
The US dollar briefly declined below 1.2400 CAD on Wednesday after the Bank of Canada (BOC) raised interest rates for the third time since last summer. However, it would quickly rebound as investors took in an overly cautious BOC rate statement. The pair was last seen trading at 1.2451.
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