Tuesday, July 12, 2016

Canadian dollar broke through the 1.31

The Canadian dollar broke through the 1.31 price level and is aiming to end lower than 1.30 after the U.S. dollar’s appeal as a safe haven has been reduced following the elections results in Japan will trigger further stimulus and the rise of Theresa May as the only candidate for the U.K. Prime Minister position has calmed markets post Brexit.
The Bank of Canada (BoC) will be thankful for a more normal environment when it releases the interest rate statement on Wednesday, July 13 at 10:00 am EDT. The central bank is expected to hold its rates unchanged at 0.50 percent. The focus for CAD traders will be the publication of the quarterly Monetary Policy Report. Since there is little action forecasted from the BoC in the third quarter the governor Stephen Poloz could try to use dovish language to put downward pressure on the loonie in an effort to boost exports.