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Forex Signal (Tue March 1, 2011 9:00am EST NY Time) CA BOC Interest Rate

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Feb 28, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    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 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 Canadian economy is facing slowing inflation, geopolitical risk, and record high monetary value, especially against USD at 0.9700 level.

    With yesterday's GDP release, Canada's economic outlook is definitely supporting for further rate hike; however, due to the record high CAD value, inflationary pressure has been offset somewhat, and considering the geopolitical situation and the sluggish growth of its biggest trade partner, U.S., BOC is very likely to keep rates unchanged and repeat recent rate statement rhetoric.

    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 & data for BOC Rate Decision

    Thanks,


    [​IMG]
     
    #1 Henry Liu, Feb 28, 2011
    Lasted edited by : Sep 8, 2016

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