Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
How to trade ahead and after BOC report?
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
Instruments to trade: USD/CAD, CAD/JPY, EUR/CAD
On December 9, the Bank of Canada left the rate at a record low of 0.25% as it was expected. However, this time the central bank may cut rates but without going below zero. The BOC is unsatisfied with the too high Canadian dollar, and if the recent strength of the US dollar can’t be sustained, the bank may really impose rate cuts. According to BMO Capital Markets, if USD/CAD hits 1.2500, the BOC will lower rates from 0.25% to 0.10%. At the same time, BMO said "our human view on the pair is that it looks reasonably likely to make a run down to 1.2550 over the next few days, but that is where we suspect it is likely to get stuck." Anyway, follow the report and remember the rules below!
- If the bank cuts rates or expands its quantitative easing program, the CAD will drop, and USD/CAD will rise.
- If the BOC doesn’t make any changes, the CAD may move up, and USD/CAD – move down.
The US Bureau of Labor Statistics will release its Consumer Price Index and many other critical events that will move the market this week!
It’s Wednesday, my fellow traders! The day is filled with news and events you need to know, and here’re some of them.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.