LiteForex - Analytics


    842.00 7.50/10
    81% of positive reviews

    USD/CAD: Important Canadian news will become known today on 05.02.2016

    Today, all attention will be focused on the US NFPR, which will slightly distract attention of the market participants from the other important news, including the data on the Canadian economy. However, the Canadian news block will be released at 15:30 (GMT 2) and include foreign trade balance for December, unemployment rate, changes in the number of employed and business activity index (PMI) for January. as per Ivey. It is expected that unemployment rate will remain unchanged (7.1%), while the number of jobs will increase to 5500.

    In the mid-January the Bank of Canada left interest rate at the level of 0.5%. However, later, in the comments the Bank of Canada reduced economic growth forecast of the country for 2016, based on the assumption that economic growth in Q4 2015 would slow down.

    Although, the rate has been left at the previous level the bank is going to adhere to soft monetary policy in order to support economy of the country, as has been repeatedly confirmed by a governor of the Bank of Canada, Stephen Poloz. It is also possible that the bank will introduce negative rate in order to achieve target inflation level.

    During European session today, the USD is sold against commodity currencies. However, it should be kept in mind that if the data on NFPR will be above the forecast ( 190 000 of new jobs), expectations of the market participants of the rise in the US interest rate at the March meeting will grow up and the USD can soar up in the market.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree