CAD July

CAD 8th-12th July Fundamental Report

News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.

CAD Main Focus This Week: 

  • Economic Data Type: Interest Rate Determination of the Canadian Central Bank
  • Server Time: Wednesday, 2 pm
  • Quick view: Bank of Canada at last policy meeting still retains interest at 1.75% and the figure remains since December 2008. Expectations of policy meetings for July still remain the same as policymakers who look at existing policies are still appropriate to support growth in Canada. The meeting members will continue to monitor the development of household expenses, the oil market as well as the global trading environment.

Quick View: Dovish

  • The Bank of Canada (BOC) has maintained interest rates at 1.75% at a policy meeting for May.
  • The next BOC meeting was on July 10, 2019.
  • BOC’s focus on economic data is CPI, Employment and GDP.
  • The BOC witnessed a growing trade war as a problem for global growth and warned that China’s restrictions had a direct impact on Canadian exports.

Main Economics Data of BOC

  • The annual GDP growth in Canada rose to 0.4% in the first quarter of 2019 from 0.3% in the fourth quarter of 2018.
  • The unemployment rate in Canada dropped to 5.4% in May 2019 from 5.7% in the previous month and under the market expectation of 5.7%.
  • The annual inflation rate in Canada rose to 2.4% in May 2019 from 2% in the previous month and above the market expectation of 2.1. It is the highest rate of inflation since October.

Expected Bias: CAD Bullish

  • Low unemployment rates support the Bank of Canada that the economy will increase.
  • The annual inflation rate of Canada rose to its highest level in seven months in May.
  • Global crude oil prices rose following tensions in the Middle East after Iran fired US military drones.

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