Henry Liu
Former FPA Special Consultant
- Messages
- 473
Bank of Canada (BOC) will once again meet for their Overnight Rate (Interest Rate) and the decision will be announced today at 9:00am sharp. Along with the rate decision, BOC Carney will also announce a Rate Statement to further explain today’s decision. Here’s what analysts are expecting:
9:00am (NY Time) CA BOC Rate Decision Forecast 1.00% Previous 1.00%
ACTION: USD/CAD BUY 0.75 SELL 1.25%
The Trade Plan
BOC (Bank of Canada) will be keeping its Overnight Rate unchanged as most analysts agree… However, BOC is likely to still remain optimistically cautious in its tone but for the time being the general market is expecting for a pause.
I’ll be trading this release using Spike Trading method as in the event of a surprise hike it is almost guaranteed that we’ll see strong market movement immediately after the release.
For more information on my Spike trading method, please read:
Henry's News Trading Method
The Market
BOC Carney is likely to keep rates unchanged as the current Cad is facing geopolitical risk and record high demand which sits at 0.9550 level against USD.
Speculation remains on the movement of CAD interest rates for late May through July. The rate may continue to climb in .25% increments with the potential to reach 2.0 % in 2011 and even 3.0% by 2012.
Additional Thoughts
It is extremely likely for BOC to keep rates unchanged. Market may react to the accompanied statement, but I believe this would probably be a no trade.
Pre-News Considerations
No Pre-News trading…
Historical Chart and Data for CA BOC Interest Rate
Thanks,
9:00am (NY Time) CA BOC Rate Decision Forecast 1.00% Previous 1.00%
ACTION: USD/CAD BUY 0.75 SELL 1.25%
The Trade Plan
BOC (Bank of Canada) will be keeping its Overnight Rate unchanged as most analysts agree… However, BOC is likely to still remain optimistically cautious in its tone but for the time being the general market is expecting for a pause.
I’ll be trading this release using Spike Trading method as in the event of a surprise hike it is almost guaranteed that we’ll see strong market movement immediately after the release.
For more information on my Spike trading method, please read:
Henry's News Trading Method
The Market
BOC Carney is likely to keep rates unchanged as the current Cad is facing geopolitical risk and record high demand which sits at 0.9550 level against USD.
Speculation remains on the movement of CAD interest rates for late May through July. The rate may continue to climb in .25% increments with the potential to reach 2.0 % in 2011 and even 3.0% by 2012.
Additional Thoughts
It is extremely likely for BOC to keep rates unchanged. Market may react to the accompanied statement, but I believe this would probably be a no trade.
Pre-News Considerations
No Pre-News trading…
Historical Chart and Data for CA BOC Interest Rate
Thanks,
Last edited by a moderator:
