The CAD Remains Volatile Ahead of BoC’s Interest Rate Decision, 50+ PIP Volatility Likely; March 10, 2021
Bank of Canada’s Interest Rate Decision
Today BoC will release interest rate decision at 1500 GMT/2030 IST followed by Press conference. 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.
Markets expect interest rates will remain unchanged as Canada’s economy shows some recovery from the fundamental results of manufacturing activity, GDP data and trade balance data. The only concern in Canada economy is slower than expected covid vaccine rollout procedure. Any hint on vaccination and additional relief package by the Canada’s government will give further directions to the Canadian Dollar.
Let’s see how CAD has reacted during the previous data release:
USD/CAD: The Canadian dollar remains volatile ahead of BOC’s Interest Rate Decision. A day chart with triple EMA confirms the bearish trend but H1 suggests up trend for the time being. A sustained close above 1.2681 on H1 chart requires for the upside rally. Alternatively, a consistent close below 1.2647 on H1 will drag the parity down below 1.2600 mark.
Key Resistances: 1.2681, 1.2693, 1.2740, 1.2776, 1.2808
Key Supports: 1.2632, 1.2610, 1.2583, 1.2555, 1.2510
Take a look and do trade wisely!