Canada’s Interest Rate Decision
Today BoC is going to release Interest Rate Decision and Monetary Policy Statement at 1400 GMT/1930 IST. The rate decision is usually priced into the market, so it tends to be overshadowed by the BOC Rate Statement, which is focused on the future. In addition, BoC’s Rate Statement is the primary tool the BOC uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision.
BoC is among one of the Central Bank who moves more aggressively to fight inflation down from a three decade high. According to the BNN Bloomberg Survey, Governor Tiff Macklem is expected to raise the Central Bank’s policy rate to 1 per cent today, followed by a series of additional hikes that markets are betting will bring it as high as 3 per cent by this time next year. In addition, traders are looking for the updated forecasts of the GDP, CPI, Employment Change and unemployment rate for the upcoming quarters.
Let’s see how CAD has reacted during the previous data release:
- The CAD erases previous gain and currently trading noticeably lower against U.S. dollar ahead of BoC’s Interest Rate Decision.
- The pair made intraday high at 1.2663 and low at 1.2610 mark.
- Today a day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above 1.2668 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below 1.2590 on H1 chart will check key supports too.
Take a look and do trade wisely!