Canada’s Interest Rate Decision May Generate 50+ PIP movement

Canada’s Interest Rate Decision

BoC is going to release interest rate decision at 1400 GMT/1930 IST. Markets anticipate no changes in the rate of interest but policy statement may give hint of the future interest rates. It’s 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:

July 15:

June 03:

Technical View:

USD/CAD: Canadian dollar is trading almost flat ahead of BoC’s interest rate decision. The pair made intraday high at 1.3259 and low at 1.3227 mark. A sustained close above 1.3235 will drag the parity up towards 1.3263, 1.3301, 1.3378 and 1.7421 mark respectively. Alternatively, reversal from key resistance will drag the parity down towards 1.3170, 1.3142, 1.3094 and 1.3046 marks respectively.

Take a look and do trade wisely!

Good Luck