CAD/NOK confined in tight range with focus on BoC

The CAD/NOK currency pair remained stuck within a tight daily range 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, NOK traders will also look to Norway’s house price data for May due at 9:00 GMT.

The CAD/NOK currency pair was last down 0.38% on the day to trade at 7.3740.