Bank of Canada moves up timeline for rate hike
Daily Currency Update
CAD - Canadian Dollar
The Bank of Canada announced on Wednesday it has ended its emergency quantitative easing program that was implemented to shield the economy from the COVID-19 pandemic. After last week’s record inflation report, the central bank also moved up the timeline for a rate hike, signalling that it could happen “sometime in the middle quarters of 2022”. Policymakers previously indicated this would happen in the second half of next year. USDCAD was down 0.50%, trading around 1.2327 at the time of writing.
Key Movers
The US trade deficit climbed 9.2% in September to a record high of $96.3B according to an advanced estimate released on Wednesday. Meanwhile, US durable goods orders fell less than expected by 0.4%. Economists were expecting a 1% decline.The US Dollar Index - which measures the US dollar against a basket of major currencies, was down 0.15%, trading around 93.81 at the time of writing. EURUSD was up 0.18%, climbing back above 1.161 after the data releases.
Finance minister Rishi Sunak laid out the UK’s budget on Wednesday, announcing a strong growth forecast of 6.5% in 2021 and tighter fiscal rules. GBPUSD was down 0.32%, trading at 1.3720 while GBPEUR was down 0.48% around 1.1812 at the time of writing.
Expected Ranges
- EUR/CAD: 1.4297 - 1.442 ▼
- GBP/CAD: 1.6908 - 1.7075 ▼
- AUD/CAD: 0.925 - 0.9334 ▼
- USD/CAD: 1.2309 - 1.2431 ▼