CAD strengthens ahead of BoC rate decision

The Canadian dollar started the week with solid gains and is now the strongest currency of the G10 countries. On Wednesday, June 1, the BoC will decide on a rate hike in Canada. Analysts' consensus assumes that bankers will raise the base rate by 50 bps, to 1.5%. Today we learned the Current Account Balance data, which significantly beat analysts' expectations and came in at 5.03 bn CAD vs. forecasts of CAD 3.2 bn CAD and an earlier reading of -0.14 bn CAD.

The Canadian dollar is the strongest currency of the G10 countries today. Source: babypips

The USD/CAD pair loses over 0.5% today and goes below the 61.8% Fibo retracement of the upward wave initiated at the beginning of April this year. Source: xStation 5