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SpanishCAD Remains Highly Volatile Ahead of BoC’s Interest Rate Decision, 50+ PIP Volatility Likely in CAD Against major peers; July 13, 2022
Bank of Canada Interest Rate Decision
BoC has scheduled to release Official Cash Rate decision at 1400 GMT/1930 IST followed by Press Conference 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, Monetary Policy 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.
Let’s see how CAD has reacted during the previous data release:
June 01:
April 13:
Technical View:
USDCAD:
- The CAD spikes down sharply after robust U.S. CPI results and touches 1.3060 mark.
- Today the pair made intraday high at 1.3060 and low at 1.2976 mark.
- Today a day chart and H1 chart with triple EMA suggest bullish trend for the time being.
- A sustained close above 1.3040 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below 1.2978 on H1 chart will check key supports too.
|
Supports
|
Resistances
|
|
1.2965
|
1.3072
|
|
1.2940
|
1.3099
|
|
1.2915
|
1.3126
|
|
1.2900
|
1.3155
|
|
1.2882
|
1.3172
|
Take a look and do trade wisely!
Good Luck
