CAD/SEK rebounds after two days of losses

The CAD/SEK currency pair snapped a two-day streak of losses on Monday in the wake of the Bank of Canada’s policy decision and Sweden’s macro data.

The Bank of Canada kept its benchmark interest rate intact at 2.75% at its July 30th policy meeting, in line with market consensus.

This has been the third hold after 225 basis points of rate cuts in seven consecutive meetings.

Policy makers noted that the Canadian economy had so far remained resilient to tariffs already mandated, as employment keeps holding up and second-half growth forecasts remain optimistic under the current tariff scenario.

Yet, the economy is due to contract in Q2, as exporters received fewer orders after front-loading deliveries in Q1.

Meanwhile, Sweden’s manufacturing activity grew at the fastest rate since May 2022 in July.

Sweden’s Swedbank Manufacturing PMI rose to 54.2 in July from a revised down 51.8 in June.