In European trade on Wednesday (Oct 26), / fell back from high to trade at 1.3590, down 0.16%.
Updated economic forecasts, due Wednesday, are expected to show a much gloomier outlook for both Canada and the world economy, as well as some signs of improvement on inflation.
The Bank of Canada is widely expected to raise interest rates by another 75 basis points to a fresh 14-year high, as persistent and broad-based inflation trumps fears that rapid policy tightening will trigger a recession.
Benjamin Reitzes, Canada rates and macro strategist at BMO, said another big 75 basis point hike could be coming and policymakers aren’t ready to back down a bit.
The Bank of Canada has raised interest rates by 300 basis points since March, making it one of the most aggressive major central banks, an incredible pace that has fuelled fears of a recession.
Consolidating downtrend ahead of expected 75bp rate hike.
The dollar‘s recovery was hampered by upbeat Asian markets, with WTI trading listlessly.
After a rising wedge breakdown, the pair will test 1.3565 support.
Us stocks fall to 3-week low as Fed rate hike expectations fade, focus on Canadian Central Bank decision.
