Canadian Dollar Could Fall if BOC Signals Steady Rates Ahead

Dow Jones
Jul 15

0920 GMT - The Canadian dollar could fall if the Bank of Canada dampens expectations for an interest-rate rise this year in a decision at 1345 GMT, MUFG Bank's Derek Halpenny says in a note. The BOC could signal that it will keep rates on hold, pushing back against market pricing for a rate increase by year-end, he says. BOC Governor Tiff Macklem could acknowledge the risk of higher inflation due to the Iran war conflict but will also likely signal scope to wait given current relatively subdued underlying inflation, he says. Trade uncertainty and increased equity market volatility on AI concerns could also undermine the Canadian dollar, Halpenny adds. The U.S. dollar trades flat at 1.4054 Canadian dollars. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2026 05:20 ET (09:20 GMT)

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