BOC Overnight Rate Decision 01/19/10

9:00am (NY Time) CA BOC Rate Decision   Forecast 0.25%      Previous 0.25%
ACTION:  USD/CAD  Depend on Market Condition

BOC (Bank of Canada) will renders its Overnight Rate decisions for the first time in 2010, and today’s meeting will be watched by traders and speculators since interest rate policy serves as a tool to curb inflation and maintain price stability, this news event is probably the most important event for the day.

This is what I wrote for the last BOC rate decision, I think the situation still remains mostly unchanged:

“Although there are no official statements or overwhelming market sentiment pointing to a possible hike, as BOC Governor Mark Carney stated in his last rate statement that BOC will maintain rates at low level until the end of first quarter 2010, but with the recent employment changes and GDP release from Canada, speculations of a possible hike or at least acceleration of their monetary policy might tilt the sentiment to a stronger CAD prior to the release…”

One observation that I’d like to share is the fact that Crude Oil has risen above the $80 a barrel just last week, and with the appreciation of the Canadian Dollar from commodities, inflationary pressure will be somewhat subdued… Therefore, there is much less of an argument for BOC to hike rates today.   But as far as our trading plan is concerned, if BOC hikes rate, we’ll SELL USD/CAD immediately; if BOC keeps rate unchanged, then stay out of the market.

Related posts:

1. BOC Overnight Rate Decision (Interest Rate Decision) 12/08/09
2. Canada BOC Overnight Rate Decision 10/20/09
3. Canada BOC Overnight Rate Decision 09/10/09
4. BOC Interest Rate Decision 07/21/09
5. ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
6. Forex News Trading For RBA Interest Rate Decision – 11/01/10
7. Forex News Trading Australia RBA Interest Rate Decision 12/06/10
8. Trading RBA Cash Rate Decision 06/01/10
9. Forex Trade Plan And Video For RBA Cash Rate Decision 08/03/10
10. RBA Cash Rate decision 03/01/2010

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