Mitsubishi UFJ: If the Bank of Canada signals future rate holds, the Canadian dollar may depreciate

```htmlGolden Ten Data reported on July 15 that Derek Halpenny from Mitsubishi UFJ Bank stated in a report that if the Bank of Canada lowers expectations for rate hikes this year in its decision, the Canadian dollar may decline. He said the Bank of Canada may signal maintaining the current interest rates, thereby countering the market’s pricing for a rate hike before the end of the year. He believes Bank of Canada Governor Macklem may acknowledge the inflation risks caused by the Iran war conflict, but given the relatively mild underlying inflation at present, he may also suggest there is room to wait. Halpenny added that trade uncertainties and increased stock market volatility due to concerns about AI may also weigh on the Canadian dollar.```