Trading the News: Bank of Canada (BoC) Interest Rate Decision
The Bank of Canada (BoC) interest rate decision may rattle the recent strength in USD/CAD[1] as the central bank appears to be on track to further embark on its hiking-cycle in 2019.
Fresh comments from the BoC may heighten the appeal of the Canadian dollar[2] as the central bank retains a hawkish forward-guidance for monetary policy, and Governor Stephen Poloz & Co. may prepare households and businesses for higher borrowing-costs as the ‘Governing Council continues to judge that the policy interest rate will need to rise over time into a neutral range to achieve the inflation target.’
In turn, indications of a looming BoC rate-hike may spur a bullish reaction in the Canadian dollar as the central bank remains reluctant to abandon the hiking-cycle, but a material change in the forward-guidance may fuel the recent advance in USD/CAD as data prints coming out of the Canadian point to a slowing economy[3].
Impact that the BoC meeting has had on USD/CAD during the previous meeting
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
JAN 2019 |
01/09/2019 15:00:00 GMT |
1.75% |
1.75% |
-1 |
-22 |
January 2019 Bank of Canada (BoC) Interest Rate Decision
USD/CAD
