Daily digest market movers: Canadian Dollar takes a backseat to central bank expectations
- The Canadian Dollar is on pace to shed weight against the US Dollar for a ninth consecutive session, and has declined against the Greenback for all but one of the last 13 straight trading days.
- After the Bank of Canada (BoC) delivered another quarter-point rate trim last week, CAD traders are immediately pivoting to focus on the odds of yet another rate cut from the BoC in September, with odds currently priced in at roughly even.
- The US Federal Reserve will be the market mover this week as markets clamor for a 25-basis-point rate cut in the near future.
- The Fed is fully priced in as a hold on rates this week, but traders will be looking for verbal cues from Fed Chairman Jerome Powell regarding September’s rate call.
- According to the CME’s FedWatch Tool, rate traders have fully priced in 100% odds of at least a quarter-point cut when the Federal Open Market Committee gathers on September 18
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