Will the BOC keep rates at 5.00%? All eyes on the Canadian dollar following the release of economic indicators

Will the BOC keep rates at 5.00%? All eyes on the Canadian dollar following the release of economic indicators

24.01.2024

In yesterday’s U.S. currency trading, the Canadian dollar rebounded against the yen ahead of today’s Bank of Canada (BOC) policy rate announcement. The CAD/JPY pair rose by approximately 1 yen, from 109.228 to 110.230, climbing from a level below the 20-period moving average on the 4-hour chart. However, during today’s Asian trading session, the CAD/JPY pair has since fallen back to 109.787.While the BOC is expected to keep its policy rate unchanged at 5.00% in this announcement, it will be worth watching whether the market absorbs the news without any surprises and whether prices hold steady.

European currencies saw the pound fall against the yen despite yesterday’s release showing that the UK’s December net public sector debt fell to £6.8 billion from £13.4 billion the previous month. The GBP/JPY pair fell from 188.919 to 187.339.It fell below the 75-period moving average (MA) on the hourly chart. Furthermore, on the 4-hour chart, prices have fallen below the 20-period MA, and as both the highs and lows are being cut lower, caution is advised regarding price movements during European trading hours.

Today’s economic indicators include Japan’s trade balance at 8:50, Australia’s leading index at 9:00, Sweden’s money market CPIF at 16:00, South Africa’s consumer price index at 17:00, the Philippines’ unemployment rate at 18:00, and the UK’sCBI Manufacturing Optimism Index, India’s CPI and Mexico’s CPI at 9:00 PM, the U.S. MBA Mortgage Applications Index at 9:00 PM, the Bank of Canada’s (BOC) policy rate and statement at midnight, remarks by BOC Governor Macklem at 12:30 AM, and U.S. weekly crude oil inventories.We will be watching for price movements following the release of these indicators to see if the BOC keeps rates at 5.00% as widely expected.

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