- The USD/CAD pair gained ground on Wednesday and rose above 1.3550.
- The fall in the price of crude oil of the OPEC on the title to weigh on the loonie.
- The bank of Canada should keep its key rate unchanged at 0.25%.
The USD/CAD pair has remained relatively quiet, close to 1.3500 in the course of the Asian session, hours before gaining ground in the last hour. As of writing, the pair was up 0.3% on the day at 1.3557.
The fall in the price of crude oil seems to be the origin of the commodities loonie to weaken against its main rivals. May feel pressured by a report from Bloomberg suggesting that the OPEC countries+ the meeting was in doubt about the disputes on oil quota, the cheating, the barrel of West Texas Intermediate (WTI) fell sharply Wednesday. Ahead of the weekly EIA Crude Oil Stocks change data, the STI was trading near $36, losing more than 2% on the day.
Evolution of the U.S. data, Boc meeting
On the other hand, the US Dollar Index has erased most of its daily losses and provided an additional boost to USD/CAD. Ahead of the ADP employment in the private sector report and the ISM Non-Manufacturing PMI data, the index is down 0.08% on the day at 97.60.
Later in the day, the Bank of Canada, under the leadership of the new Governor, Tiff Macklem, is expected to announce its decision to publish the monetary policy statement at any time.
Boc: big Six banks, the expectations for the Interest Rate Decision.
Preview of this case, the declaration must maintain a tone cautious, as if recognizing that conditions are changing, in line with the Bank the less pessimistic scenario, it is from April, so that the prospective party is expected to repeat that the Bank is ready to adjust its programmes if necessary,” said analysts at TD Securities.