The Bank of Canada is preparing to release their decision on interest rates for the coming month tomorrow 17 July 2013. At this point in time, experts have predicted that the rates are likely to remain unchanged.
Analysts note that the CAD has experienced a slight upturn in the recent month due to the rise in oil prices as concerns over supply have mounted. Crude is a major export of Canada and plays a significant role in its economy. While enjoying this success, the CAD has dropped against the USD due to the improving economy outlook of its southern neighbor.
It should be noted that despite having enjoyed its biggest weekly gain since 2011, it was reported on 16 July that the CAD has suffered decline. Traders are advised caution in their investments with the CAD in the lead up to the release of the rate decision.
Yen Falls Against USD on Monetary Policy Statements
Traders have taken a bearish outlook on the Japanese currency for the past two days following statements by the Bank of Japan that they will continue their involvement in quantitative easing measures aimed at bolstering the economy.
It should be noted that news of the plans to persist with their stimulus activities come as financial observers continue to speculate on the US Federal Reserve’s plans to back away from their monetary easing activities over the course of the coming year, thus improving the position of the dollar in the eyes of traders. The minutes for the Bank of Japan’s June meeting which are set to be released tomorrow, will likely be closely watched by traders.
Analysts point out that while investors have taken a more conservative approach to their dealings with the Yen, it is believed that the currency is likely to bounce around, not remaining in a single direction of trading. Traders are advised to proceed with caution with the Yen over the coming days.
Oil Prices Climb on Speculation of Dwindling Supply
The price of oil continues to remain high following predictions that the stockpiles in the US are decreasing, thus driving up the price for summer demand. Crude prices enjoyed a three day high as traders continue to assess the potential influence that the cut in supply may have on the markets.
Experts have pointed to an expected rise in demand for gasoline due to the summer travel season when consumption of the fuel is generally high.
While not the preeminent source for industry data, the American Petroleum Institute is set to issue a report on the energy inventory today 16 July 2013, which may help give traders a clearer picture on the state of the market.
Traders are advised to proceed with caution as the oil market has been fairly volatile in recent days.