Week in Americas: Will Carney disappoint Loonie Bulls

This week the loonie has been one of the most actively traded currencies amongst the majors. It certainly makes a change from trading one of the most docile pairs of late.

USD/CAD has drifted higher, to the top end of the recent range, as the market begins to focus on next week’s Bank of Canada’s rate announcement. All week long curve traders have been pricing out the possibility of a rate hike into the middle of 2013. Investors are keen to see the Banks accompanying policy statement, looking for confirmation of the omission of previous wording that a tighter policy “may become appropriate.”

If it has indeed been dropped from the official statement, the market should see further pressure applied to the CAD as it may pertain to general market sentiment. Friday’s Canadian inflation figures (core +1.3% y/y) suggest that inflation is unlikely to be a major concern for the Bank of Canada over the coming quarters.


  • CAD Bank of Canada Rate Decision
  • AUD Consumer Prices Index (YoY)
  • USD Federal Open Market Committee Rate Decision
  • NZD Reserve Bank of New Zealand Rate Decision
  • GBP Gross Domestic Product
  • USD Gross Domestic Product (Annualized)
  • USD U. of Michigan Confidence

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell