CAD/SEK holds close to a 1-week high ahead of BoC decision

The CAD/SEK currency pair held in proximity to a 1-week high of 7.0256 on Wednesday, as investors braced for the outcome of the Bank of Canada’s policy meeting later in the day.

The Bank of Canada is expected to keep its benchmark interest rate intact at 2.75% at its June 4th policy meeting.

In April, the BoC highlighted the significant challenges in projecting future GDP growth and inflation due to the unpredictable nature of US trade policy.

The central bank presented two contrasting economic scenarios in its April Monetary Policy Report:

– one involving limited tariffs and a temporary weakening of Canadian growth and,
– one more severe scenario depicting a protracted trade war leading to a Canadian recession and a temporary surge in inflation.

Meanwhile, SEK traders will also look to Sweden’s preliminary CPI inflation figures for May due out on Thursday.

The CAD/SEK currency pair was last down 0.18% on the day to trade at 7.0047.