The Canadian dollar fell today amid the threat of trade wars and concerns about lack of progress in NAFTA talks. The big rally of crude oil prices was unable to help the currency.
The Bank of Canada released the Financial System Review today, mentioning the high household indebtedness level amid key risks and saying about the pace of interest rate increases:
The pace of rate increases will depend on domestic monetary policy and global market forces. The ability of households to manage payment increases associated with higher rates will also depend on the pace of income growth.
Yesterday, Statistics Canada released a report about the trade balance, showing that the deficit widened to the record high of $4.1 billion in March. The report also mentioned tariffs:
Canada has proposed additional tariffs on the imports of certain products from the United States. These tariff rates are also at the 25% and 10% levels. The tariffs cover a more diverse range of products and primarily fall under the categories of aluminum products; articles of iron and steel; machinery and electrical equipment; prepared foodstuffs; chemical products; paper products; and other miscellaneous manufactured items.
Tomorrow, Statistics Canada will release an employment report. Analysts predicted a robust increase by 19,100.
USD/CAD rose from 1.2943 to 1.2984 as of 20:00 GMT today. EUR/CAD gained from 1.5235 to 1.5321, touching the daily high of 1.5361 — the highest since May 9. CAD/JPY fell from 85.08 to 84.51.
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