Mark up your calendar for the BoC announcement on 10 July, due at 1400GMT
- Its a near unanimous expectation that there will be no change to the cash rate, on hold at 1.75%
But, the focus lies in the release of the Bank's Monetary Policy Report, which will include its latest projections for the economy. These are expected to show:
- an upward revision to its Q2 GDP forecast (given better recent data)
- and, in turn, although not as certain, a slight upward revision to the full-year (2019) growth forecast
Also on the BoC Statement, its expected to highlight, as other central banks have done recently, global uncertainties and a nod to recent encouragement from the US-China trade 'truce'. While commentary in the statement along such lines will tend to be perceived as dovish, less dovish will be any focus on the better data coming through domestically. A concern for the BoC is they not sound too hawkish compared with other central banks … this a risk for CAD bears to be alert to.
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Traders should also take note that at the same time as the Bank of Canada announcement and Report, Fed Chair Powell gives his testimony … 1400GMT on the 10th. And, of course, FOMC minutes the same day due later, at 1800GMT.
