July 6, 2021

Traders Ready, This Is The Market Situation Ahead Of BOC Business Review!

 The Canadian currency today recorded a depreciation against the US dollar in the U.S. market trading session as market players focused on the Bank of Canada (BOC) Business Review. This indirectly reduces the loonie profits enjoyed last Friday.

The Loonie traded 0.3% lower against the US dollar at 0.80905 as of 9.50 p.m. Last Friday, the CAD posted its biggest gain in 8 weeks by strengthening nearly 1% after NFP readings indicated that the Fed would wait for more data before cutting bond -buying rates and raising interest rates.

The Business Review is scheduled to be released at 10.30 p.m. This reading can give a clue to the Central Bank on the country's economic prospects. A handful of analysts expect that the central bank will reduce bond purchases further at next week’s policy announcement.

World stocks continued to soar albeit limited following concerns about the COVID-19 Delta variant. Trading volumes were not as large as before as the United States extended economic closures until late last week.

Oil prices, which are one of Canada's main exports, continue to soar, driven by OPEC + disputes over output policy. U.S. crude oil prices rose 0.2% to $ 75.33 a barrel. The US dollar index, which measures the US dollar against major currencies, declined 0.16% to trade level of 92.263.