How Will CAD React To The BOC Meeting?

How Will CAD React To The BOC Meeting?

2023-10-25 • Updated

The Bank of Canada (BoC) is widely expected to leave its policy rate unchanged at 5% in its upcoming meeting, maintaining a hawkish stance in the face of rising inflation. The Canadian Dollar (CAD) has weakened against the US Dollar (USD) since the BoC's last rate hike in July, influenced by ongoing inflation concerns. Inflation in Canada fell to 3.8% in September from 4% in August, but the BoC remains uneasy about its persistently high levels. While some signs of a cooling housing market and stagnant economic activity exist, the BoC could signal future tightening due to its inflation worries.

EURCAD - D1 Timeframe

EURCADDaily-2510.png

EURCAD is inching slowly towards the 76% of the Fibonacci retracement zone; which I usually consider to be a key level. The trendline resistance serves as a further confluence, as well as the 200-day moving average. This means that the scenario is likely to turn bearish in the next few hours.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.40528

Invalidation: 1.48306

CADCHF - D1 Timeframe

CADCHFDaily-2510.png

CADCHF is currently creating a pattern that is largely similar to the inverted head-and-shoulder pattern. The current state of the market is a retest of the bottom - a demand zone, and we can expect to see a bullish pressure from that zine in the meantime.

Analyst’s Expectations: 

Direction: Bullish

Target: 0.66673

Invalidation: 0.64523

CADJPY - D1 Timeframe

CADJPYDaily-2510.png

CADJPY is currently resting on the 50-day moving average, and very close to the trendline support which can be considered a confluence. In my opinion however, I will be waiting to spot an entry from the 100-day moving average as the demand zone is considered to be a stronger confirmation since it is formed at the 76% of the Fibonacci retracement.

Analyst’s Expectations: 

Direction: Bullish

Target: 110.402

Invalidation: 106.700

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more trade ideas and prompt market updates on the telegram channel.

Similar

CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera