| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:00 | Eurozone | M3 money supply, adjusted y/y | June | 1.5% | 1.9% | 2.2% |
| 08:00 | Germany | IFO - Business Climate | July | 88.6 | 89 | 87.0 |
| 08:00 | Germany | IFO - Current Assessment | July | 88.3 | 88.5 | 87.1 |
| 08:00 | Germany | IFO - Expectations | July | 89.0 | 89.0 | 86.9 |
CAD weakened against most of its major counterparts in the European session on Thursday,
as investors continued to price in yesterday’s decision by the Bank of Canada to cut its interest rate for a second meeting in a row and dovish-sounding remarks from the central bank’s governor Tiff Macklem.
The BoC’s July 24 meeting ended with a 25-basis-point rate decrease in its policy interest rate. The move, which pushed the BoC’s benchmark overnight rate down to 4.5%, was widely expected by markets. In the policy statements, the Canadian central bank’s policymakers noted that the cut was approved amid signs that the broad price pressures continue to ease and expectations that inflation will move closer to 2%.
Speaking at the post-meeting press conference, the BoC’s governor Tiff Macklem noted that the downside risks are taking on increased weight in the BoC’s monetary policy deliberations. He also reiterated that it is reasonable to expect further rate cuts, if inflation continues to move down as expected.
Macklem’s remarks were interpreted by market participants as rather dovish and reinforced bets on more rate decreases from the BoC this year.