What will happen? Canadian m/m GDP will be announced at 15:30 MT (GMT+3) on Thursday, September 30…
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 Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).