#StrongerCanadianDollarPredicted; #BankofCanada; #U.S.FederalReserve
Ottawa, July 12 (Canadian-Media): A stronger Canadian dollar is predicted as the Bank of Canada is on hold and the U.S. Federal Reserve is set to cut interest rates, media reports said.
Bank of Canada/Twitter
Central banks on both sides of the border were provided with monetary-policy guidance yesterday with different perspectives.
In the United States, Fed chairman Jerome Powell had guaranteed that the Federal Open Market Committee will cut rates at its meeting in late July, according to TD senior economist James Marple.
Royal Bank of Canada did not appear to be in any rush to lower rates.
The value of the loonie is determined specifically by the difference between the government of Canada two-year bond yield and the equivalent U.S. Treasury bond yield.