Fecha Actual:July 25, 2024

USDCAD prepares for changes in monetary policy

This Wednesday the Statistics Canada office will publish the Consumer Price Index data for the month of September.

The data will be published before the decision that the Bank of Canada will take on the current monetary policy on October 27.

 

The entity maintains the purpose of the recovery of the economy through the recovery of employment and acceptable inflationary levels around 2 and 3%.

The unemployment rate for the month of September is heading towards the Bank’s objectives, at 6.9%. They have advanced in a reduction in unemployment of almost 3% since January (9.4%).

The Canadian economy would have overheated for September inflation, as forecasts estimate an increase of 0.1% per month and towards 4.3% annualized.

Therefore, with inflation continuing above expectations, the Bank of Canada is likely to resume reducing stimulus when it meets later this month.

The new spike in Canadian inflation could drag down the exchange rate and have effects on the monetary policy decision.

USDCAD is in buy preference up to 1.24.

 

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