CA BOC Interest Rates Decision | October 23, 2013 | Currency News
CA BOC Interest Rate today will probably not surprise the market once again as the Canadian economy remains on the positive side, benefiting from the recovery in the US economy. With the recent drama in US politics, CAD could benefit more if we get a strong accompanied statement during today’s release.
Here’s what analysts expect:
10:00am (NY Time) CA BOC Interest Rates Decision Forecast 1.00% Previous 1.00%
DEVIATION: 0.25% (BUY CAD 1.25% / SELL CAD 0.75%)
The Trade Plan
Most analyst agree that the BOC will hold rates at 1.00%. I´ll be trading this release with a 0.25% deviation using Spike Trading method. In the event of a surprise hike it´s almost guaranteed that we´ll see strong market movement immediately after the release… However, in all reality, BOC is likely going to keep rates unchanged at 1.00% since economic data has been mixed lately, although I would expect to see BOC maintaining a hawkish tone…
For more information on my Spike trading method, please read: https://www.currencynewstrading.com/how-to-get-started-with-news-trading/
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: USDCAD.
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.
BOC Interest Rate Decision is set in a target bandwidth for the overnight rate each month of +/- 0.25% around its target overnight rate. The Bank of Canada does not interfere in the overnight market so long as the overnight rate stays within its target band, but the Bank will use its reserves to lend or borrow in the overnight market to ensure that the overnight rate stays within its announced bandwidth.