This week Canada will make two major economic announcements. On the one hand, a new economic budget will be presented at 5:00 p.m. today (GMT -3) and on the other hand, on Wednesday the Bank of Canada will pronounce on the interest rate.
The budget to be presented is intended to be used for economic recovery after imbalances caused by the current world crisis.
It is expected that in this budget that they will announce, it will have two billion Canadian dollars in social assistance and would incorporate new tax measures. Wage and rent subsidy programs would also be extended until September.
The tax measures are effective as of 2022 and would apply to luxury goods and services. This budget would also implement a new program for subsidiaries of new business hires.
The current government has already recently planned a budget of $ 100 billion dollars for the next three years, where they assume that the fiscal deficit will be within the economic parameters that the country can face. The relevance of the current federal budget that they will announce is that, on the one hand, it will be the first in two years and, on the other, it occurs in a context of the third wave of infections from the current pandemic.
Regarding the interest rate that will be published next Thursday, it is expected to remain unchanged at 0.25%, however, changes are expected on the purchase of bonds. The speculations are about a decrease in the rate of purchase of bonds.
To trade the data with us, we will be on Wednesday 10:45 am EST live on YouTube at this link.
Affected by this context and by volatilities in the price of crude oil, one of the main commodities traded in the country, the projected prices are:
USDCAD closed buy. It is currently at 1.2535 and in an area of preference for a sell.