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Forex Signal (Tue July 19 2011, 9:00am NY Time EST) - CAD BOC Interest Rate Decision

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Jul 18, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    The Bank of Canada (BOC) will announce their rate decision today at 9:00am sharp.

    Here’s what analysts expect:

    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
    Most analyst agree that the BOC will hold rates at 1.00%. I’ll be trading this release with a 0.25% deviation using Spike Trading method. In the event of a surprise hike it’s almost guaranteed that we’ll see strong market movement immediately after the release.

    For more information on my Spike trading method, please read:
    Henry Liu's Trading Method

    The Market
    BOC is expected to keep rates unchanged during this meeting and as a matter of fact, most analysts agree that BOC will also keep rates at the current level for the September rate decision.

    The key to this rate decision will be on BOC Carney's accompanied statements. If Carney drops the "carefully consider" phrase and focuses on high inflation, then market sentiment could take that as a sign for possible rates hikes... Credit Suisse is pricing in about 50 basis points of hike in the next 12 months, and despite of market speculation, with CAD at record strength against USD, there is really no rush to hike rates, imho.

    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 either way.

    Pre-News Considerations
    No Pre-News trading…

    Historical Chart and Data for CAD BOC Interest Rate Decision



    Thanks,



    [​IMG]
     
    #1 Henry Liu, Jul 18, 2011
    Lasted edited by : Sep 8, 2016
  2. Henderson

    Henderson Recruit

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    Henry
    You were absolutely right on this news, but still with my technique I made ​​20 pips with your tip, thank you and continue to guide us through the most important news
     

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