The Canadian dollar did not have economic data to show yesterday or today; however, the Governor of the Bank of Canada, Poloz, had an opening statement at the Standing Senate Committee on Banking, Trade, and Commerce. He repeated what he said in the House of Commons two days ago: the BoC will need to raise its rate to be neutral to achieve the inflation target.
Poloz said that even with last week’s increase of the policy rate to 1.75 percent, monetary policy remains stimulative. According to him, the policy rate today is still negative in real terms or when adjusted for inflation. Poloz mentioned that the policy rate would need to rise to neutral to achieve the BoC’s inflation target and that an appropriate pace of increase will depend on their assessment at each fixed announcement date on how the outlook for inflation and related risks is evolving.
On the release front, tomorrow will be a busy day with the employment change in October, the unemployment rate in October, the trade balance in September, among other factors.
The technical levels to consider for today in the USDCAD are 1.3060 on the downside and 1.3111 on the upside.