As inflation enters the target range, the Bank of Canada cuts interest rates, and the Canadian dollar weakens.

After the Bank of Canada cut interest rates, it is understandable that the Canadian dollar fell among most G7 currencies, with the most notable being the rise of the US dollar against the Canadian dollar after the data release. Following a surprising increase in the US services purchasing managers' index (PMI), the US dollar was boosted and further rose.

FX678 FinanceJun 5 11:09 ET

The Bank of Canada has fired the first shot of interest rate cuts! It may continue to cut in July! Short-term gains for USD/CAD have increased by over 50 points.

On June 5th, 2024, the Bank of Canada announced its first interest rate cut since 2020, lowering the benchmark interest rate by 25 basis points to 4.75%, a decision in line with market expectations. This move signifies that Canada has become the first central bank in the G7 to initiate an easing cycle of monetary policy, providing a new direction for global monetary policy.

FX678 FinanceJun 5 10:02 ET

There are sufficient reasons for the Bank of Canada to lower interest rates this week! The Canadian dollar is bearish, and hopes for a rebound are pinned on expectations of future interest rate cuts cooling down.

On June 5th at 21:45 Beijing time, the Bank of Canada will hold a rate decision. Currently, the market is roughly split on whether the central bank will take action now or wait until July. Howard Du, G10 Forex strategist at Bank of America, said, 'Ahead of the June Bank of Canada meeting, we maintain a bearish CAD stance.'

FX678 FinanceJun 5 01:10 ET

Japan Labor Data Suggests Gradual Wage Growth Continues -- Market Talk

Japan labor survey data for April confirms that the gradual increase in wage growth continues, ING economists say.

WSJJun 4 21:44 ET

Bank of Canada Prepares for Interest-Rate Cut Pivot

The Bank of Canada is ready to pivot. The only question is when it will act.

BNN BloombergJun 4 15:16 ET

Is the yen about to see a major catalyst? It is rumored that the Bank of Japan is considering discussing reducing bond purchases at its June meeting.

Insiders said that the central bank does not intend to surprise bond traders; Japanese government bond futures once gave back all intraday gains, and after the news came out, the yen exchange rate strengthened.

Zhitong FinanceJun 4 07:33 ET