Canada BOC Overnight Rate 03/02/2010

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 be issuing its Overnight Rate decisions once again today and this meeting will be watched by traders and speculators since interest rate policy serves as a tool to curb inflation and maintain price stability, making this news event probably the most important event for the day.

This is what I wrote for the last two 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 rise in GDP and crude oil prices , CAD could be well supported in the time being…”

One observation that I’d like to share is the fact that Crude Oil has fallen from above the $80 and despite of strong Canadian fundamental outlook, the appreciation of the Canadian Dollar should balance out recent inflationary pressure… 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. RBA Cash Rate decision 03/01/2010
6. Forex News Trading AU RBA Interest Rate 05/03/11
7. Forex News Trading AU RBA Interest Rate 04/05/11
8. Forex News Analysis AU RBA Interest Rate 07/05/11
9. ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
10. Forex News Trading AU RBA Interest Rate Decision 01/31/11

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