Tuesday, July 16, 2024

ING Bank Expectations for the Movements of the Canadian Dollar Pair After the Bank of Canada’s Decision

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Canadian dollar pair

After the Bank of Canada surprised markets by deciding to raise interest rates by 25 basis points on Wednesday, economists at ING Bank issued new expectations for the Canadian dollar pair in light of the results and the possibility of another interest rate hike next July.

In this context, the experts of the Dutch bank said that the interest rate hike by the Bank of Canada led to a decline in the USDCAD pair, as the pair is currently testing its lowest levels since November 2022 at 1.32 points and 1.33 points. Expected to find support near 1.30 points.

Likewise, economists at the European Bank Group suggested that the Canadian dollar pair could reach 1.30 points this summer, pending a negative reassessment of growth expectations in the United States and expected interest rate cuts by the US Federal Reserve. 2023 could negatively impact the Canadian dollar, so the new Bank of Canada’s tight monetary policy means the Canadian dollar pair could trade near 1.25 points by the end of the year.

Earlier, Commerzbank’s economists had expected a slight slowdown in the movements of the Canadian dollar pair, especially in light of the possibility of a limited recovery of the Canadian dollar against its US counterpart, especially the Canadian dollar benefiting from the Bank of Canada. The hawkish tone of the reports added to the possibility that the U.S. Federal Reserve could end its cycle of crippling pressure.

Economists at the German bank continued to raise the possibility of a limited recovery for the Canadian dollar against the US dollar due to a strong economy in Canada, so the Canadian dollar could benefit if Canadian interest rates approach. US interest rates.

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Credit Suisse forecast for the Canadian dollar pair USD/CAD

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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