Will the Bank of Canada’s policy rate announcement signal a shift in direction, or will the Canadian dollar’s price remain unchanged?

Will the Bank of Canada’s policy rate announcement signal a shift in direction, or will the Canadian dollar’s price remain unchanged?

11.12.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen ahead of today’s Bank of Canada policy rate announcement. The CAD/JPY pair rose from 106.446 to 107.438. On the hourly chart, the price moved from the -2σ to the +2σ Bollinger Bands. On the 4-hour chart, the price has recovered to last week’s high, and on the daily chart, it is currently attempting to break above the 10-day moving average resistance line.

European currencies fell against the U.S. dollar after the final reading of Germany’s November consumer price index, released yesterday, remained unchanged from the previous month at 2.2% year-over-year. The euro fell against the dollar from 1.0568 to 1.0498. The decline came as the pair faced resistance at the 20-day moving average on the daily chart. On the weekly chart, the RSI had rebounded from the 30 level but is now trending downward again.

Today’s schedule includes South Korea’s employment statistics at 8:00, Japan’s Business Sentiment Index (BSI) and domestic corporate goods prices at 8:50, remarks by RBA Deputy Governor Hauser at 16:00, South Africa’s Consumer Price Index at 17:00, South Africa’s retail sales at 20:00,at 8:30 PM: India’s money supply; at 9:00 PM: the U.S. MBA Mortgage Applications Index; at 10:30 PM: the U.S. Consumer Price Index; at 11:45 PM: the Bank of Canada’s policy rate announcement and statement; at 12:30 AM: remarks by Bank of Canada Governor Macklem; and at 1:30 AM: U.S. weekly crude oil inventories. I’ll be watching the Canadian dollar closely to see if the Bank of Canada’s policy rate announcement brings any change in market direction.

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