NEWS TONIGHT – THAT WILL INTERCEPT TECHNICAL ANALYSIS
- The rate will move from 1.00 to 1.25%; (see chart)
- BOC will be bullish in the their statement after one month of solid datas.
- To tighten easy money so that it won’t fall into the trap like UK high inflation.
- If there is no rate hike then price should range.
- However we expect the statement to be in favor for CAD
- If there is any upward movement – we prepare for short position. (See Chart)
Foreign-exchange traders who had all but priced in a Bank of Canada rate hike are suddenly paying up to hedge against the risk of a letdown at Wednesday’s policy meeting.
The country’s five biggest lenders all brought forward their rate-hike expectations to January from April this month after the nation’s jobless rate dropped to its lowest in more than 40 years. But the cost to protect against loonie losses has skyrocketed after reports the U.S. would withdraw from the North American Free Trade Agreement gave investors pause and thrust the prospect of a stand-pat BOC into the spotlight. Read More @ https://www.bloombergquint.com/markets/2018/01/16/currency-traders-brace-for-possibility-of-hawkish-hold-by-boc
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