Canadian Dollar Hits Fresh 3 – week Low ahead of BoC’s Interest Rate Decision, 40+ PIP Volatility Expected; Oct 28, 2020

Bank of Canada’s Interest Rate Decision

BoC will publish interest rate decision along with the monetary policy report around 1400 GMT/1930 IST. 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. It is important to note here that since March 27, BoC has kept interest rate unchanged at 0.25 pct and now the movement of Canadian dollar totally depends on the tone of the BoC Governor as it will be hawkish or dovish?

Let’s see how CAD has reacted during the previous data release:

Sept 09:

July 15:

Technical Analysis:

USD/CAD: The Canadian dollar falls drastically ahead of BoC’s interest rate decision and hits fresh 3 – week low at 1.3287 mark. The pair made intraday high at 1.3287 and low at 1.3176 mark. A sustained close above 1.3211 mark requires for the upside rally. On the top side, key resistances are seen at 1.3287, 1.3308, 1.3352 and 1.3384 mark respectively. Alternatively, key support levels are seen at 1.3176, 1.3142, 1.3121 and 1.3063 mark respectively.

Take a look and do trade wisely!
Good Luck