for Canada said the main opposition party, will not support the Conservative Party on Tuesday (March 22) 2011-2012 of the proposed budget, the increase in the probability of the May election, market participants have on Canada's Central Bank (Bank of Canada) interest rates of time expected first quarter or early second quarter adjusted to the third quarter.
analysts pointed out that the adjustment of interest rates expected to weaken Canadian dollars to a certain extent, however, as long as crude oil and other commodity prices remain strong, then the Canadian dollar will be able to withstand higher interest rates expected impact brought about by adjustments or other negative factors.
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in fact, Canada's Central Bank has been intensive interest rates. The Central Bank last year, the cumulative interest rates 75 basis points, to 1%, and started in October suspended interest rates.
2 month, market expected Canada's Central Bank monetary policy meeting on May 31 raised rates 25 basis points the probability 50%, in July interest rate hike has a probability of 100%.
however, occurred in recent weeks Japan earthquake and Canada might have speculation about an early election diluted Canada will soon raise interest rates is expected.
however, Canada capital of Nova Scotia (Scotia Capital) Camilla Sutton, Chief foreign exchange strategist said that Canada and the United States widening spreads between will support Canadian dollars.
early this year, Canada's central bank interest rates will far exceed the pace of the US Federal Reserve (FED) expectations are key factors in promoting the Canadian dollar higher against the dollar.
in addition, Canada's economic and financial strength will also support Canadian dollars higher.
14:23 ', $ c $/0.9753/58.
