- The Bank of Canada is meeting today to decide whether to maintain its overnight rate at 5%. It is widely expected to do so.
- Australian CPI (inflation) data released a few hours ago showed annualized inflation has risen more strongly than expected, from 5.2% to 5.6% instead of 5.3%. This has increased sentiment in favour of expecting further rates hikes, which has pushed up the value of the Australian Dollar today.
- Bitcoin remains strong near $35k after making a new 5-month high a few days ago. This will be attractive on the long side to trend traders. This rise has been attributed to BlackRock listing its bitcoin ETF on the Depository Trust & Clearing Corporation database, sparking intense speculation that the first Bitcoin ETF could soon be approved for retail investors.
- In the Forex market, the USD/JPY currency pair has continued to trade within a narrow range just below the big round number at ¥150.00, after previously threatening a major bullish breakout to new 20+ year highs. This has also raised the prospect of Bank of Japan intervention. Since the Tokyo open, the strongest major currency has been the Australian Dollar, while Canadian Dollar has been the weakest.
- Stock markets are mixed, with major Asian indices opening the day higher, but major US indices like the NASDAQ 100 and the S&P 500 trading lower over the same period.
- The prices of some soft commodities have continued to rise significantly, with both Cocoa and Sugar futures either reaching or close to new long-term highs.
- There will be a release of German ifo Business Climate data later today.
Forex Today: Bank of Canada Expected to Leave Rates Unchanged
Adam Lemon
The Bank of Canada will be holding a policy meeting today and is expected to maintain its overnight rate at 5%.