Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bank of Canada To Determine Interest Rates This Week

The Bank of Canada is scheduled to update its monetary policy stance after its meeting on Wednesday. There is debate about whether the BOC will hike 25 or 50 basis points from its current 3.75% rate. Still, Canadian dollar traders will likely draw on the comment. Currently, Canada’s benchmark rate stands at 3.75%, which is near the top of the field of the majors, just behind the Reserve Bank of New Zealand’s and the Federal Reserve’s key rates. Whether the Bank of Canada decides to hike 50 basis points, it could raise rates to match the current US or New Zealand rates, respectively.

Investors who focus more on the significant throttle back on its rhetoric for monetary policy intentions going into 2023 will likely find the alternative of ambiguous hawkishness struggling quickly. That is because there is a similar tenor to the Fed’s outlook, and anticipation will soon shift over for the Fed’s decision next week, affecting the CAD’s further upward path.

USDCAD daily chart

USDCAD – Day Chart

The US dollar has risen against the Canadian dollar (USDCAD) for four consecutive days, hitting the highest level since early November. The Bank of Canada will discuss interest rates tonight. The market has different expectations for the specific rate hike. Pay attention to whether the Bank of Canada will mention the possibility of a pause button on the interest rate hike early next year. If it happens, the Canadian dollar must be increased downward.

Last Updated: 07/12/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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