CAD Could Use a Little Help From Its Friends

28.05.2018 / 23:21

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It's another tough day for CAD. Blame it on weaker oil prices and a lack of dealers given the U.S. holiday. Just the same, you could point a finger of blame at its "friends" at the central bank who meet Wednesday and are expected to keep rates steady despite a good economy. The chance of a hike is only at 21%, according to overnight index swaps.

Aniway raising rates is seen as just a matter of time. And July's meeting -- with its new forecasts and scheduled press conference -- seems to many like a more natural moment to get back on the path of raising interest rates. While a nod to action may help, the cliche is that actions speak louder than words. And CAD could use help as it approaches a ``multiple support'' zone.

Break that and it's an ``extremely negative development'' for CAD, which could send it sinking another 4.9%.

Trader Georgi Bozhidarov

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CAD Could Use a Little Help From Its Friends

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