Canada’s Interest Rate Decision
Canada will publish Key Interest Rate at 1500 GMT/2030 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. In addition, 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. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions. Important to note here that BOC has kept key interest rate stable at 0.25 pct from March 2020.
Let’s see how CAD has reacted during the previous data release:
USD/CAD: The Canadian dollar trades marginally higher ahead of BOC’s interest rate decision. The pair made intraday high at 1.2821 and low at 1.2773 mark. A sustained close above 1.2817 will check the key resistances around 1.2860, 1.2917, 1.2995 and 1.3030 mark respectively. Alternatively, current downside movement will check key supports around 1.2772, 1.2749, 1.2722, 1.2690 and 1.2640 marks respectively.
Take a look and do trade wisely!