The Canadian dollar has been on a slightly heavier upside ahead of the announcement of the Canadian central bank’s monetary policy. The Canadian yen fell from 87.30 to around 86.70 in the morning in London. It was reacting to the depreciation of European stocks. After that, there was a scene where the yen recovered to the 87 yen level, but at the moment it has fallen below 87 yen again. The Bank of Canada is expected to keep the policy rate and bond purchase pace unchanged. The recently announced monthly GDP lacks strength, and it is expected that further tapering will be postponed this time in consideration of the balance with the next US FOMC.
Recently, the central banks of each country have been cautious, and the image of interest rate hikes is far away.
Today is Canada, but we assume that this result could affect tomorrow’s ECB.
When that happens, the EUR believes that selling pressure will continue to increase.
