Bank of Canada raises benchmark interest rate by a quarter point to 1.5% | Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver July 11, 2018




USDCAD spot rate: 1.3103 - 1.3108 (as at 7:51am PST)

Ranges:

Asia:

1.3127

to

1.3157

Europe:

1.3125

to

1.3176

North America:

1.3063

to

1.3148

Technical Support / Resistance:

S2

S1

R1

R2

1.2950

1.3000

1.3195

1.3240

Key Economic Data Releases:

- Bank of Canada interest rate:

https://www.bankofcanada.ca/2018/07/fad-press-release-2018-07-11/

- U.S producer price index: 0.3% (exp 0.2% / prev 0.5%)

Event Calendar:

Date

Canada

U.S.A.

July 12

July 13

New housing price index

Consumer price index

Consumer sentiment index

Bank of Canada Governor Stephen Poloz brushed aside concerns about trade wars and pressed ahead with a fresh interest rate increase as inflation hovers at its highest in 7 years. The central bank raised its overnight benchmark rate by a quarter point to 1.5%, the second hike this year and fourth over the past 12 months. The statement didn't introduce any new "dovish" language, with officials only reiterating that rates will need to rise further, albeit gradually, to keep price pressures in check. The rate move signals policy makers are determined to bring rates back to normal levels and are confident in the Canadian economy's ability to cope with both higher borrowing costs and the mounting trade tensions. Wednesday's move was fully priced in by markets. Investors have also been anticipating additional hikes every six months or so until the benchmark rate settles around 2 or 2.25% by the end of 2019, in line with the central bank's gradualist guidance. Currently, the TSX is down 0.69% and the DOW is down 0.48%. EURCAD is down 0.39% trading between 1.5330 and 1.5442. GBPCAD is down 0.40% trading between 1.7330 and 1.7449. JPYCAD is down 0.93% trading between 0.01173 and 0.01185 Gold is down 0.44% trading between $1,248 and $1,256USD/oz., silver is down 0.64% trading between $15.88 and $16.02USD/oz., while oil is down 0.62% trading between $72.89 and $74.04.

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

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