Interest rate decisions have traders agog this week, with an above average number of such releases expected in the three days ahead. Canada’s rate decision is something for traders to particularly keep an eye on. Though fundamentals have been mixed in the Canadian economy, many expect a downgrade of growth outlook in Canada which could result in an interest rate slash in the next few months.
The Bank of Canada (BOC) is expected to play it safe this week with a holding of its rates at the current level of 1.00%. Speculators, however, will want to pay particularly close attention to the subsequent announcement by BOC Governor Mark Carney which is expected by some to reveal hints at future cuts due to growth outlook changes. The news could rock the Canadian dollar (CAD) and push its value significantly lower over the coming weeks.
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