User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday January 20, 2021 - 10:26:09 GMT -

Share This Story:
| | Email

BoC preparing for some major Interest changes

The global pandemic has had a global critical effect on almost every single sector in the world. The COVID-19 set the new rules and regulations, which we have to obey in order to face a new reality, in which we all woke up one day. The world is moving in a different direction and while nobody expected anything like this to happen, here we are in the middle of the global pandemic and the social-economic crisis.

Some countries and businesses managed to overcome the period better than the others. This obviously very much depends on the skills and the opportunity of the country. The ones with the relatively stable economy managed to face the global pandemic better, though with a lot of loss still.

The developed countries, like Canada, have been struggling in many aspects, though are making some changes and amendments in order to create better beings and better circumstances for the citizens. Some things are impossible to handle, but the ones that are possible have to be handled in the best way.

The Canadian Dollar should slowly be depreciating relative the USD, which is only predicting the harder economic situation of the country. Canada is planning to implement several measures to ease the situation, which most likely will slow down the critical process.

The bottom line zero

Among the measures which have to be taken, in order to overcome the crisis and to maintain the more or less stable pos-pandemic economy, the government and the officials and planning to cut the interest rate closer to zero. This was the official announcement made by the Bank of Canada. The measure shall be implemented in order to tighten economic restrictions to contain the second wave of COVID-19 cases to offset optimism that activity will rebound later this year.

The critical situation has also been caused by the fact that the country and the official working places had to lay off the employees for the first time throughout this period. The lay off was due to the uncertainty in the forecasts and the uncertainty in the situation. While cutting interest rates to zero might ease the economic state of the citizens overall, sickening the local businesses shall definitely harm the overall economic state.

Even though online gambling is illegal in Canada, the rumors were spread that the country might actually overthink its laws and approaches in order to make at least somewhat profit for the economy. It was said that because of the unemployment rate constantly increasing and the lack of physical resources excessive for the employees and employers, the online industry shall be encouraged.

Canada is not the first country to reconsider its approach to the industry. Many other countries are keeping the activation of online gambling in mind. It should assist in overcoming the crisis by providing remote and physical jobs for unemployed people. The taxes generated from the online gambling companies can be an addition to the state budget, plus the possibility for remote working could have subsidized the economy.

So far no movement and melting of the ice in the direction of legalizing online gambling has been heard, though this topic is not moved from the table either. This website can provide you with more information regarding the online gambling industry and the possible profit it can deliver within this critical time for the country.

The Interest rates

While some specific measures such as online gambling legalization and interest rates are the main hope for the first aid kit to the economic crisis, Canada is trying hard to maintain the CAD at a stable point.

Interest rates were thought to have hit rock bottom in Canada after they have slashed 150 basis points last March to a record low of 0.25%, a level the Bank of Canada considered the effective lower bound. But in November, Governor Tiff Macklem said a lower floor could allow Canada's central bank to ease further if the economy weakens.

The final policy decision will be made next week by the Bank of Canada. So far, the institution has already ruled out the negative interest rate. Further easing would likely be a so-called "micro rate cut" of less than 25 basis points. That's an increment the central bank has not used since the target for the overnight rate became its main policy tool in February 1996.

Andrew Kelvin, who is the chief Canada strategist at TD Securities also commented on the interest rate possible changes. He said that people have their guard up, reflecting the cut risk. The three-month overnight index wrap rate has moved below the 0.2% level where the overnight rate has been setting. It has eased 4 basis points since November to trade at about 0.17%.

Unlike Kelvin, the Bank of Canada spokesperson declined to comment on the ongoing decision-making process. Similar to the BoC, some other smaller banks have also applied changes, generally moving in small increments. A rate cut could add stimulus by reinforcing already low borrowing costs and checking further gains for the Canadian dollar.

Adjusting the asset-purchase program and setting yield-curve targets are other easing options the BoC has flagged, seeing the risk of economic scarring if the recovery takes too long.

Economic activity is expected to pick up once lockdowns end and vaccinations become more widespread, but analysts say the potential for another rate cut should not be ignored.

Although there is still no final answer and no decision made, the Bank of Canada just mentioned the preparation to the start of the survival plan.



Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex