Bank of Canada raises rates to 1.25%

USDCAD spot rate: 1.2455 - 1.2460 (as at 7:58am PST)

Ranges:

Asia:

1.2409

to

1.2462

Europe:

1.2423

To

1.2461

North America:

1.2363

To

1.2523

Technical Support / Resistance:

S2

S1

R1

R2

1.2280

1.2330

1.2590

1.2640

Key Economic Data Releases:

- Bank of Canada interest rate:

http://www.bankofcanada.ca/2018/01/fad-press-release-2018-01-17/

- U.S. Industrial production: 0.9% (prev 0.4% / exp -0.1%)

Event Calendar:

Date

Canada

U.S.A.

Jan.18

Jan.19

Manufacturing sales

Building permits, housing starts

Consumer sentiment index

The Bank of Canada pushed forward with another quarter-point interest rate increase and said more hikes are likely coming, even as it cautioned it isn't in any rush to return rates to more normal levels. Policy makers led by Governor Stephen Poloz increased the benchmark overnight rate to 1.25%, the highest since the global recession and their 3rd hike sine July. The move is a nod to a red-hot economy running up against capacity with a jobless rate at the lowest in more than 4 decades. However, uncertainty surrounding the future of NAFTA is clouding the economic outlook. Central bank officials repeated their dovish language about moving ahead cautiously and warned they expect the economy will require continued stimulus to remain at capacity. The Bank of Canada press conference is coming up this morning at 8:15am. Currently, the TSX is up 0.27% and the DOW is up 0.38%. EURCAD is up 0.14% trading between 1.5109 and 1.5311. GBPCAD is up 0.44% trading between 1.7061 and 1.7270. JPYCAD is down 0.26% trading between 0.01120 and 0.01128. Gold is down 0.36% trading between $1,332 and $1,343USD/oz., silver is down 0.61% trading between $17.07 and $17.29USD/oz., while oil is down 1.71% trading between $63.41 and $63.94.

Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive, CME Group

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