Progress in US stimulus talks boosted risk sentiment.
Bank of Canada’s wait-and-see stance could lift the CAD.
USD/CAD set to extend losses as RSI dips into oversold territory.
CAD/JPY eyes move higher as price flirts with key resistance.
Equity markets advanced in the Asian session amid progress in US fiscal stimulus negotiations.
Australia’s ASX 200 advanced 0.61% after Westpac Consumer Confidence index rose to its highest level in a decade. Japan’s Nikkei 225 surged 1.33%.
Attention will turn to the Bank of Canada’s interest rate decision.
Steady As You Go BoC Could Lift Canadian Dollar
The Canadian Dollar could extend gains versus safe haven counterparts following positive coronavirus vaccine developments and the BoC’s wait-and-see approach to monetary policy.
The market expects the BoC to hold pat on its monetary policy settings at its upcoming meeting.,
Whilst Covid-19 cases have surged in Canada forcing tighter lockdown, robust fiscal support could mean that the BoC sits on the sidelines for now.
At the end November Finance Minister Chrystia Freeland unveiled over C$51.7 billion of additional fiscal stimulus including an enhanced wage subsidy program.
With the imminent rollout of a covid vaccine ether is a good chance that the economic recovery will pick up.
These positive factors may convince the BoC to keep its monetary policy settings steady and in turn put a premium on the cyclically-sensitive CAD.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
