[adrotate group="2"]
SHOCKING STANDSTILL: Bank of Canada STICKS with Interest Rates at 2.75%! What This Means for YOU!
In a surprising twist that left half the market gasping, the Bank of Canada chose to keep its benchmark interest rate steady at 2.75% in June 2025! That’s right, folks! It’s the second time they’ve hit the brakes after slashing rates by a jaw-dropping 2.25 percentage points in a series of seven consecutive decisions. What’s behind this puzzling decision?
Tariff Turmoil! U.S. Trade Strategies THREATEN Canadian Growth!
Buckle up, because the governing council has raised alarms about the unpredictable U.S. tariff saga! With threats of further trade actions looming and tariffs still sky-high, the risks to growth are skyrocketing! This flip-flopping strategy from the U.S. is sending chills down the spines of Canadian exporters who are bracing for a demand CRASH.
Inside Scoop from Bank of Canada Governor Macklem!
Bank of Canada bigwig Tiff Macklem is sounding the alarm bells! Recent increases in U.S. tariffs on steel and aluminum showcase just how unpredictably the U.S. handles trade. And guess what? He’s hinting at the possibility of a future rate cut if the economy doesn’t hold its ground against these tariffs! Is inflation lurking in the shadows? You bet it is!
Macklem wants everyone to know that the volatility of inflation is making them sweat! While consumers might not feel the impact yet, businesses are preparing to hit the brakes on hiring. Canadians, it’s time to keep your wallets close because uncertainty is the name of the game!
What’s Brewing in the Markets? A TWIST of Fate!
The market’s reaction? A wild rollercoaster ride! After some back-and-forth, the Canadian Dollar flexed its muscles, sending USD/CAD plummeting down 30 pips to a tense 1.3675. Hold onto your seats as the market continues to swirl with uncertainty!
WILL Rates Drop? The Swaps Market Thinks So!
Glimpsing into the future, the Canadian swaps market indicates a startling 46% chance of a rate cut in July, with analysts pricing in 36 basis points of easing for the rest of the year! Will rates sink even lower? Keep your eyes peeled, because twists and turns are guaranteed!
USD/CAD: The Bull Flag Battle!
In the technical arena, USD/CAD is caught in a fierce bull flag pattern, but hold your horses! A breakout isn’t happening overnight, and the bear’s claws are itching to drag it down. The quest for the psychological level of 1.3500 is heating up, but don’t count out a short-term pullback towards 1.3750 or even 1.3800 before the bearish storm rolls in!
As long as USD/CAD can’t conquer the 1.3840 swing high, the bearish trend is ready to strike. And watch out! Could the RSI dip into oversold territory? Traders, keep your eyes peeled for a potential seismic shift in momentum!
In Short: All Eyes on the Bank of Canada!
The latest cat-and-mouse game between interest rates, tariffs, and inflation is unfolding before our eyes. Will the Bank of Canada maneuver its way through this chaos, or will they falter? Gear up, because economic drama is just getting started!
[adrotate group="2"]
