In the Asian session on Thursday (October 27), the USD/CAD fluctuated downwards, temporarily reporting 1.3556, an increase of 0.01%. The Bank of Canada (Central Bank) announced on the 26th that it would raise interest rates by 50 basis points, raising the benchmark interest rate to 3.75%. This is the sixth time the Bank of Canada has raised interest rates this year. The Bank of Canada also announced that it will continue to reduce the size of its balance sheet in order to match the interest rate hike policy and further ease inflationary pressures.
The latest from the Bank of Canada:
The Bank of Canada said Canadian inflation has eased over the past three months, but price pressures have not eased, core inflation measures and inflation expectations remain high, and benchmark interest rates still need to rise further. Bank of Canada Governor Tiff Macklem said that while the time to exit monetary tightening is closer, it is not over yet. The Bank of Canada forecasts that rising interest rates will continue to weigh on growth, with Canada’s economic growth slowing from 3.25 per cent this year to 1 per cent next year and 2 per cent in 2024.
USD/CAD technical analysis:
USD/CAD shows a range structure in the 1.3545-1.3582 area in Asia. The major is expected to remain flat ahead of key U.S. data.
