Bank of Canada Expects Higher Inflation

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On June 1, the Bank of Canada hiked its Overnight Cash Rate from 1.00% up to 1.50%. In addition, the bank stated that it would continue its monetary tightening program.

The initial announcement caused a spike in the value of the Canadian Dollar. However, it almost immediately was reversed, as the markets spotted that in the official statement the Canadian central bank revealed that it expects inflation to continue to move higher. Namely, inflation has not peaked, as thought by some market participants.

Quoting the statement: "The Bank of Canada today increased its target for the overnight rate to 1½%, with the Bank Rate at 1¾% and the deposit rate at 1½%. The Bank is also continuing its policy of quantitative tightening (QT).

Inflation globally and in Canada continues to rise, largely driven by higher prices for energy and food. In Canada, CPI inflation reached 6.8% for the month of April – well above the Bank's forecast – and will likely move even higher in the near term before beginning to ease."

Released Document

Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening

The USD/CAD reacted to the rate hike with a 18 point or 0.14% drop, before recovering from the low by 42 base points.

On a larger scale, the pair has been encountering a resistance zone throughout 2022. Meanwhile, the rate has been booking higher low levels.

Initial Reaction

Larger scale situation

Back to articles

Actual Topics

Fri, 03 Jun 2022 12:54:46 GMT

USD strengthens due to US employment

The release of the monthly US employment data at 12:30 GMT caused a surge of the US Dollar's value. The EUR/USD reacted to the news with a 30 base point decline over a span of 15 minutes. The US Average Hourly Earnings increased by 0.3%, compared to the expected 0.4%. Non-farm Employment Change was revealed to be at 390,000 and

Wed, 25 May 2022 08:46:58 GMT

NZD surges due to hawkish RBNZ

On May 25, the Reserve Bank of New Zealand hiked its Official Cash Rate from 1.50% up to 2.00%. The hike was already expected by the markets. The announcement strengthened the New Zealand Dollar. Meanwhile, the bank revealed that inflation is above the bank's targets, despite its recent efforts and rate hikes, some of which were higher than expected. Quoting the statement:

Subscribe to "Fundamental Analysis" feed

تسجيل
كي تعرف المزيد عن منصة تداول دوكاسكوبي بنك للعملات وعقود الفروقات ومعلومات أخرى متعلقة بالتداول,
يرجى الاتصال بنا أو طلب اتصال.
للمزيد من المعلومات حول التعاون العملي المحتمل,
يرجى الاتصال بنا او ترك طلب لاعادة الاتصال
للمزيد من المعلومات حول منصة تداول الفوركس\الخيارات الثنائية, السوق السويسري للفوركس و اي معلومات اخرى تتعلق بالتداول,
يرجى الاتصال بنا أو طلب اتصال.
كي تعرف المزيد عن منصة تداول دوكاسكوبي بنك للعملات وعقود الفروقات ومعلومات أخرى متعلقة بالتداول,
يرجى الاتصال بنا أو طلب اتصال.
للمزيد من المعلومات حول منصة تداول العملات المشفرة\عقود الفروقات\الفوركس, السوق السويسري للفوركس و اي معلومات اخرى تتعلق بالتداول,
يرجى الاتصال بنا أو طلب اتصال.
للمزيد من المعلومات عن الوسطاء المعرفين واي معلومات أخرى متعلقة بالتداول,
يرجى الاتصال بنا أو طلب اتصال.
للمزيد من المعلومات حول التعاون العملي المحتمل,
يرجى الاتصال بنا او ترك طلب لاعادة الاتصال