Bank of Canada (BOC) will once again meet for their Overnight Rate (Interest Rate) and the decision will be announced today at 9:00am sharp. Along with the rate decision, BOC Carney will also announce a Rate Statement to further explain today’s decision. Here’s what analysts are expecting:
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 and by an overwhelming majority, it is expected to be unchanged from previous releases, which is to keep rates at 0.25% for an extended periods of time, most likely throughout the entire 2010.
CAD with its anchor in Crude Oil (as Canada is the 2nd largest Crude exporter in the world), is offsetting inflationary pressure on its economy from the appreciation of Crude prices. This dynamic is likely to keep CAD at the current level until U.S. FOMC starts to hike interest rate, at which time we may finally see the need for BOC to follow suit.
With recent rally in the global equity market and commodities in general, it is most likely to see CAD strengthen against USD in the short term. Today’s trading plan will be to SELL USD/CAD if BOC decides to hike interest rate to 0.50%, this would surprise the market and we should see a strong demand for CAD, therefore we should SELL USD/CAD. If BOC decides to leave rates unchanged, then we should stay out of the market as well.
Related posts:
- BOC Overnight Rate Decision (Interest Rate Decision) 12/08/09
- Canada BOC Overnight Rate Decision 10/20/09
- Canada BOC Overnight Rate Decision 09/10/09
- BOC Interest Rate Decision 07/21/09
- RBA Cash Rate Decision Trading Plan 07/06/10
- ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
- Trading RBA Cash Rate Decision 06/01/10
- Forex Trading Strategy on RBA Interest Rate Decision 10/04/10
- Forex Trade Plan And Video For RBA Cash Rate Decision 08/03/10
- RBA Cash Rate Decision 11/30/09 (Interest Rate Decision)
{ 4 comments… read them below or add one }
Hi, thanks for the good work you doing. The truth is that only God can reward you. Thank you.
Henry, some time ago you give a week analysis that traders should watch out for LONG on all JPY pairs and the great thing it went as you said. Could you please do that once in while. Thanks once more. We Love you.
Sure Mustapha, every now and then a clear sentiment will emerge and we could almost tell with high probability, that’s when I will be releasing my analysis.
HENRY MAY GOD BLESS FOR ALL UR ENLIGHTENMENT
Hi Henry,we all appreciate your excellent analysis of FX news.They are deep,short,clear and to the point. By the way i’m from Africa, so there no chance that i’m marketing anything on your behalf(Let’s make that clear). I encourage any FX trader (experinced or noviced like me) to check you out and make his/her own decision. The thing that i admire about you is that you love what you do,do it well and you certanely are not pressuring anybody to buy anything.Thanks a lot.
Koko (Ivory-Coast/West Africa)