Attention on Canada and the BOC’s policy rates

Attention on Canada and the BOC’s policy rates

09.06.2021

Yesterday, both European and U.S. markets saw mixed trading with little movement; the German DAX, which had been falling, continued its decline and closed at 15,640.WTI crude oil has broken through the key $70-per-barrel level and is currently trading at $70.50. Expectations for a recovery in demand are rising as restrictions on economic activity are eased. Gold has pulled back slightly from its recent highs and has now fallen below the key $1,900 level, trading in the $1,894 range.

In the foreign exchange market, European currencies are showing strength, and the euro/dollar pair is rising. The euro/dollar is currently trading around 1.218. From a technical perspective, it appears to be finding support at the 20-day moving average on the daily chart, so it will be worth watching to see if it breaks through last month’s high. However, with the ECB’s policy rate announcement scheduled for tomorrow, it is important to keep in mind that the market may lack a clear direction today.

Today’s schedule includes Germany’s trade balance and Japan’s machine tool orders at 3:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, Canada’s BOC policy rate and U.S. wholesale inventories (final reading) at 11:00 PM, U.S. weekly crude oil inventories at 11:30 PM, and the U.S. 10-year Treasury auction at 2:00 AM.While Canada’s policy rate is expected to remain at 0.25% as in the previous meeting, attention will focus on what the central bank says regarding tapering and interest rate hikes during the press conference.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed