The Bank of Canada meeting: results

The Bank of Canada meeting: results

Canadian central bank left the Overnight Rate unchanged at 1.5%.

In its statement, the Bank of Canada claimed that:

  • The recent economic data are in line with the forecasts.
  • Canadian GDP growth will slow down temporarily in the third quarter, mainly because of fluctuations in energy production and exports.
  • Although CPI inflation was at 3% in July, it should move back towards the target of 2% at the beginning of the next year.
  • Trade tensions represent a key risk and are affecting some commodity prices.
  • Financial stresses have intensified in some emerging markets but are not spreading.
  • The central bank is closely monitoring NAFTA negotiations.
  • Higher interest rates will be necessary to achieve the inflation target. The Bank of Canada will act gradually, depending on the economic data.

So, there nothing to contradict a rate hike in October, but at the same time, there’s no blunt statement that the increase will happen.

Technical setups. 

USD/CAD keeps trying to stick above the resistance at 1.3180. The statement of the BOC couldn’t support the Canadian dollar to pull the pair down. If the pair is able to close above 1.3180, there will be odds of the further rise. The next resistance is at 1.3219. However, if there is a progress in the NAFTA deal, the CAD will be able to fight with the USD. The support lies at 1.31.

USDCADDaily.png

On the daily chart of CAD/JPY, 50-day and 100-day MAs don’t let the pair go up. Moreover, the JPY is stronger against the CAD because of the risk-off sentiment of the market. Traders worry about the NAFTA uncertainties. As a result, there are risks of the pair’s fall. Supports are at 84.35 and 83.58. If there is a progress in the deal today, the pair will stick above 84.35. The resistance is at 84.85.

 CADJPYDaily.png

GBP/CAD has significantly risen on the optimistic Brexit news. The pair has already tested above the 50-day MA and the resistance at 1.7058. If the pair closes above the resistance, the further rise is anticipated. The next resistance is at 1.7217. In case of the progress in the NAFTA talks, the pair may weaken. The support is at 1.6890.

GBPCADDaily.png

Similar

Latest news

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera