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 0.50% Previous 0.25%
ACTION: USD/CAD Depend on Market Condition and BOC statement.
BOC (Bank of Canada) will be hiking its Overnight Rate as an overwhelming majority of analysts agree ever since BOC dropped its pledge to keep rates low until June of 2010. BOC is going to follow the footsteps of RBA and start its interest rate tightening cycle, which will definitely increase demand for CAD.
A closer look at CAD should reveal that its economy is sound, its anchor to crude oil is strong, and its proximity to the U.S. provides a relatively safe alternative for the USD yet with the tightening cycle in place, CAD would clearly be the better choice.
However, I’d probably expect CAD to remain neutral against the USD also for the same reasosn stated above, but it may clearly outshine against GBP, EUR, JPY, or even AUD.
Our plan to trade this news is to wait for a surprise overhike. If BOC hikes to 0.75%, we will sell USD/CAD immediately. If BOC keeps rate at 0.25%, we will BUY USD/CAD. If BOC hikes as expected, we’ll stay out of the market.
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
- Trade Plan For RBA Interest Rate Decision 09/07/10
- Forex Trade Plan And Video For RBA Cash Rate Decision 08/03/10
- RBA Cash Rate Decision Trading Plan 07/06/10
- Forex Trade Plan For UK BOE Interest Rate Decision 12/09/10
- Trading RBA Cash Rate Decision 06/01/10
- Forex Trading Strategy on RBA Interest Rate Decision 10/04/10
