• Home
  • Publications & Software
  • Contact us
  • Privacy policy

Financial News Hub

Investing, trading, stocks and Forex news & updates

  • Financial News
  • Forex News
  • Daily Forex Signals
  • Forex Research & Tech. Analysis
  • Stocks
  • Equities & futures
  • Funds
  • Commodities & Energy markets
  • Investment
  • Business News
  • MacroEconomics
  • Taxes & Money
  • Bitcoin
> Home / Daily Forex Signals / The Canadian Dollar is Poised for Further Weakness
abs_728z90_red

The Canadian Dollar is Poised for Further Weakness

November 28, 2019 by admin

The Canadian Dollar has been trading under pressure as tariffs could weigh on the currency. The Bank of Canada delivered the widely expected lack of change, leaving the setting for the overnight rate at 1.25%. While higher rates over time remain implied by their economic outlook, they repeated that they will be cautious in considering future policy adjustments. Their views on recent developments were largely balanced, but with a notable mention of the growing uncertainty to Canada’s outlook posed by trade policy. The markets projection is for two more rate increases this year, in July and October, leaving a 1.75% setting by year-end.

The crucial final paragraph of the announcement was little changed relative to January. The repeat of “further rate hikes likely but guided by data and implemented with caution” is a place-holder as they observe the evolution of trade policy, wages, housing and GDP.

The Bank of Canada expects GDP growth of 3% in 2017 in-line with the Bank’s projection in the January monetary policy report. Yet that was largely due to higher imports, which mainly reflected stronger business investment. The key for policy going forward is the evolution of GDP and inflation relative to their projections. But uncertainty remains elevated, including the tariff plans from the White House in the United States making for a policy outlook that is written in very light pencil.

The March announcement revealed little change in the cautious, data dependent Bank of Canada. Hence, they should be able to hold policy steady until past mid-year, providing ample time to access the impact of NAFTA and possible U.S. tariffs on trade and investment. The long-anticipated rotation to export and business investment from household spending and housing is moving along in fits and starts. Of course, household spending did slow in Q4, which is something the Bank has been eying for some time. The announcement assured that they are continuing to monitor the economy’s sensitivity to higher interest rates, noting that household credit growth has decelerated for three consecutive months.

Three Rate Hikes in 2018

The Bank of Canada is expected to move again in July, lifting rates 25 basis point to 1.50%. Another 25-basis point rate hike is penciled in for October to leave a 1.75% rate that should close out the year. But the risk is intensifying that the economy faces fresh headwinds from trade and housing this year. Of course, an expanding U.S. economy would provide a strong tailwind for Canada, if trade protectionism does not weaken the link between the two nations. In other words, uncertainty clouds the outlook, leaving a gradual and cautious course ahead as the most sensible policy path for the Bank of Canada this year.

Canada housing starts improved

Canada housing starts improved to a 229.7k unit pace in February from a revised 215.3k growth rate in January. Currency trading of the Canadian Dollar saw the Loonie remain stable. The pick-up in starts was contrary to expectations for a mild dip and comes amid general softness in sales and prices so far this year as new mortgage rules and other measures pulled-activity ahead to late 2017. Starts saw a 6-month average of 225.3k in February versus 224.6k in January, maintain a steady growth rate since November of last year. Single detached starts fell 9.8% to a 56.7k rate in February while multiple urban starts jumped 15% to 154.5k in February. By region, starts improved in Toronto and Vancouver, with a record number of apartment starts featuring in Toronto.

Canadian Dollar

The post The Canadian Dollar is Poised for Further Weakness appeared first on Forex Signals, Trade Copier, Forex Trading Strategies.

SOURCE: Forex Signals, Trade Copier, Forex Trading Strategies – Read entire story here.

Related posts:

Canadian Dollar Forecast in AUD/CAD, NZD/CAD, GBP/CAD Rates

 

 

Bitcoin Wealth Alliance

Bitcoin news

BLOCKv Partners with Ben & Jerry’s to Launch a Unique Vatom-powered Campaign to Celebrate it’s 10th Birthday in Australia

December 9, 2019 by Bitcoin PR Buzz Feed

Danish bank bans crypto trading by its employees; court agrees

December 9, 2019 by Bitcoin Warrior

Quiz: Can We Guess Your Education Level Based On How Much You Know About The 1960s?

December 9, 2019 by Robert Desalvo

  • Bitcoin (BTC) Target Fresh Monthly High or Even $8K
  • Daily Discussion, December 09, 2019
  • BIP 324: A Message Transport Protocol That Could Protect Bitcoin Peers
  • A Bitcoin Wallet Is Orbiting the Earth at 5 Miles Per Second
  • Bitcoin News Summary – December 9, 2019

Bitcoin Exchange Chart

Coin
BTC
BTC
Exchange
BTC-E
BTC-EBitStamp
Period
24h 7d 30d
Currency
$
  • Buy $0.00
  • Sell $0.00
  • High $0.00
  • Low $0.00
  • Volume 0 BTC
Period
24h 7d 30d
Currency
$
  • Buy $0.00
  • Sell $0.00
  • High $0.00
  • Low $0.00
  • Volume 0 BTC
Exchange
BTC-E
BTC-E
Period
24h 7d 30d
Currency
$
  • Buy $0.00
  • Sell $0.00
  • High $0.00
  • Low $0.00
  • Volume 0 LTC
Last updated: 5 minutes ago

Daily Forex Signals

Forex for December 9, 2019. Prediction and Analysis

December 9, 2019 by GainScope

Crude Oil Prices May Retreat Before FOMC, UK Election

December 9, 2019 by Ilya Spivak

EUR/USD: US Dollar Volatility Elevated Around Nonfarm Payrolls

December 8, 2019 by Rich Dvorak

  • US Dollar, NZD/USD, AUD/JPY & More: Charts for Next Week
  • US Dollar Soars as Solid Jobs Report Underscores Less-Dovish Fed
  • US Dollar Outlook: Fed Meeting in Focus as Tariff Deadline Looms
  • Midday Forex Prediction For December 6, 2019
  • US Dollar After NFP: GBP/USD, USD/CAD Testing Key Chart Levels

World Markets Watch

Market Data by TradingView

Forex Research & Tech. Analysis

Relief Rallies Face Challenges From Former Channels

December 9, 2019 by

Eight U.S. stocks hit an all-time high Friday and are at least twice their low the last 250 days: $PODD, $ATKR, $CRUS, $LULU, $GNRC, $DCPH, $INSP,…

December 9, 2019 by Dr. Wish

Nifty Bank Nifty Weekly Options Trading Levels

December 9, 2019 by Bramesh

  • Fighting Forty (4 of 4)
  • Daily Markets Broadcast 2019-12-09
  • Germany: Welcome surprise from exports – ING
  • Risk appetite stalls after China trade data
  • EUR/USD Technical Analysis: Euro Sellers Back in Control?

Live currencies

Live Exchange Rates

Macro Economics

Why the Supreme Court must protect our constitution

December 9, 2019 by Mainly Macro

Squawk: Stock indices remain vulnerable to corrective losses Global share markets…

December 9, 2019 by MarketChartist

Liz Cheney Loves Traitors

December 9, 2019 by ProGrowthLiberal

  • Should a second referendum happen before the General Election and what should accompany Remain on the ballot?
  • Squawk: EURUSD hunting for 1.1500 by Stephen Pope EURUSD began last…
  • How Long Will US Foreign Net Income Dark Matter Continue?
  • The Tories will never undo the impact of austerity
  • December starts out with a thud





Stocks Markets

Subs: Podcast Up

December 9, 2019 by ToddSullivan

Which ‘Queer Eye’ Cast Member Does Tan France Say Is ‘The Nicest Person He’s Ever Met’?

December 9, 2019 by Catherine Wright

TV reporter smacked on bottom during live broadcast: ‘You violated, objectified and embarrassed me’

December 9, 2019 by

  • SPY Chart – 1 Year
  • ’90 Day Fiancé’: Angela Deem Says She and Michael Are ‘Probably Done’ if This 1 Thing Doesn’t Happen
  • Subs: Higher DCF
  • Former Rep. Katie Hill says the wave of harassment she faced after alleged revenge porn leak left her contemplating suicide
  • CAB, PMI and WTI Relationship
  • ‘RHONY’: Does Luann de Lesseps Still Talk to Bethenny Frankel After She Quit?

Equities

Squawk: Commitments of Traders reports covering commodities forex bonds and stock…

December 9, 2019 by Ole Hansen

Squawk: European equity averages stay strong An erratic session on Tuesday…

December 9, 2019 by MarketChartist

Yield curve inversion, recessions and asset class returns

December 8, 2019 by jsblokland

  • Squawk: What’s “Moo”ving Beef? by Stephen Pope Live Cattle prices look…
  • Squawk: Global equities plunge again for intermediate-term tops In a report…
  • Weekly Futures Recap With Mike Seery
  • Global Bonds: Protection in Down Markets
  • COT: Oil bought metals sold as markets focused on the US

Business News

Saudi Aramco to Raise $25.6 Billion in Biggest I.P.O. Ever

December 9, 2019 by Kate Kelly and Stanley Reed

Data Security Remains Top IT Concern for Small Businesses and Others

December 9, 2019 by Sandeep Rathore

Finland’s Sanna Marin, 34, will soon become the world’s youngest sitting prime minister

December 9, 2019 by

  • This Coffee Machine Makes Delicious Cold Brew in Minutes, Not Hours
  • Pensacola shooting victims were aspiring aviators gunned down at flight school – NBC News
  • Uber Says 3,045 Sexual Assaults Were Reported in U.S. Rides Last Year
  • How This Pro Athlete Sticks to His Budget
  • U.S. Chamber’s Shop Safe Campaign Seeks to Protect Businesses from Counterfeit Goods

Trends

all posts analysis aud banking bitcoin blockchain brexit btc cfd commodities contributions credit cards currencies Economics equities finance fixed income forex futures getting started gold holidays indices innovation now investing investments jpy links management money multi-asset nasdaq:aapl natural gas north america oil others places Politics r/bitcoin red roundup sectors special report stocks taxes/regulation trend following uk news usd video wealth adviser

 

  • Facebook
  • Google+
  • RSS
  • Twitter
  • YouTube

Copyright for all syndicated content belongs to the linked sources.