Today at 14:00 GMT, Bank of Canada Interest Rate Decision and Rate Statement
BOC Rate decision and Statement is due to be released along with the Monetary Policy Report. The Rate Decision expectations changed recently with more analysis and economists surveyed forecasting an increase by 0.25% to the base rate, from 1.25% up to 1.50%. If the Bank of Canada decides to increase base rates it would be a second time this year, the Bank hiked rates in January earlier this year also which resulted in the immediate CAD currency strength across most crosses and especially against the US Dollar (USDCAD). The rate decision will be followed by the Rate Statement which will provide some key insights into the thinking behind today’s decision and also set the expectations for the future monetary policy. A press conference will be held at 15:15 GMT, during which BOC Governor Poloz will further explain the decisions made and the central banks forecasts for the economic landscape. As a result of this economic data release, volatility could increase significantly in all CAD crosses, especially in USDCAD.
USDCAD price action appears supported at 1.3100 level. If that key level holds support confirmed breakout above the initial upside resistance at 1.3200 could open up the way for the retest of additional upside resistances at 1.3330 followed by 1.3386 and 1.3450 levels. Alternatively, confirmed loss of 1.3100 support level could open up the way for the retest of initial downside support at 1.3028 followed by 1.2900 which is psychologically important 200 Day Moving Average level.
GBPCAD price action appears bearish, initially capped by the upside resistance at 1.7497. Confirmed breakout higher ould negate the Bearish outlook targeting additional upside resistances at 1.7670 followed by 1.7781 levels. Initial downside is supported at the cluster of the current swing lows at 1.7300 level. Confirmed loss of that level and the Daily close below would open up the way for the retest of additional downside upports at 1.7100 followed by 1.7000 levels.
EURCAD price action is currently supported by 200 Day Moving average at 1.5311 level. Confirmed loss and the Daily close below that level could indicate further Bearishness potentially targeting further downside supports at 1.5171 followed by 1.5038 and 1.4924 levels. The upside is initially capped by resistance at 1.5450, Confirmed breakout above could change the bearish outlook targeting additional upside resistances at 1.5521 followed by 1.5590.