As strong economic data poured in this month, most recent topped off by an improvement in employment data, the market has almost totally factored in the chance of a rate hike by the bank of Canada. With yields on interest rate futures swelling and the Canadian dollar breaking 30 year highs, there is little chance Governor Dodge won?t hike rates. There are major concerns that in an increase in the overnight lending rate will only lead to an even stronger Canadian dollar, which may damage Canada?s export business. The concern is so grave that some companies, such as UPM-Kymmene Oyj, are contemplating closing down factories in Canada due to already high currency prices.
[B]Previous 24 Hours:
[/B]There were no economic indicators scheduled over the previous 24 hours
[B]Next 24 Hours:[/B]
- [B]Housing Starts /B
Expected: 215.0K
Previous: 229.7K - [B]Bank of Canada Rate decision
[/B]Expected: 4.50
Previous: 4.25
See Daily FX Weekly Calendar for more details:
http://www.dailyfx.com/story/calendar/weekly_focus/DailyFX_Weekly_Calendar_for_Week_1182174476937.html