Traders Expect Bank of Canada Plan to Impact Market

June Canadian Dollar traders are waiting for a Bank of Canada report detailing its plan to revive the economy through non-standard means. This could be in the form of a sovereign debt or corporate debt buyback. Investors will also be interested in the amount and duration of the plan. The size of the plan is likely to have the largest influence on the direction of the market.

Earlier this week the Bank of Canada cut rates 25 basis points to 25 bp. They also stated in their report that they expect the Canadian economy to contract further and are not likely to raise interest rates above 25 basis points until June 2010.

Canadian Dollar traders are waiting for a Bank of Canada report detailing its plan to revive the economy through non-standard means. This could be in the form of a sovereign debt or corporate debt buyback. Investors will also be interested in the amount and duration of the plan. The size of the plan is likely to have the largest influence on the direction of the market.

Earlier this week the Bank of Canada cut rates 25 basis points to 25 bp. They also stated in their report that they expect the Canadian economy to contract further and are not likely to raise interest rates above 25 basis points until June 2010.

The announcement of the plan should have a negative impact on the Canadian Dollar.  The size of the break will be determined by the size of the new plan.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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