USD CAD Gearing Up for Bank of Canada Meeting

The Bank of Canada is expected to keep its benchmark interest rate at.25%. In addition it is expected to reiterate its stance that the ratewill stay at the current level until the second quarter of 2010.

The Bank of Canada is expected to keep its benchmark interest rate at .25%. In addition it is expected to reiterate its stance that the rate will stay at the current level until the second quarter of 2010. Most traders are curious as to how much if any quantitative easing the BoC will apply. At its last meeting, it approved the use of quantitative easing but refused to use it, instead seeking to take a “wait and see” attitude toward the economy.

Although the Canadian export market is improving because of higher industrial metal and crude oil prices, some traders are concerned that the price of the Canadian Dollar may be getting to high. Some feel that a high priced currency will curtail demand for Canadian exports. This topic will most likely be addressed by the BoC at the meeting. The June Canadian Dollar is likely to react off this news especially if it involves setting an upside price limit for the Canadian Dollar.

Daily Chart

Click for Full Image

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

Disclainer: