On Monday, Poloz was speaking at the House of Commons when he mentioned that they would sit on the uncertain (i.e. bad) data and wouldn’t act for 18-months as they digested how the two-way economy was performing. USD/CAD immediately sold off on this news falling ~120 pips in a few hours. What surprised many was when Poloz came out a few hours later to clarify his comments that the market misunderstood. The Bank of Canada governor said the comment about inaction was about the output gap and not a ...
Trading the News: Canada Consumer Price Index (CPI) Despite forecasts for a uptick in Canada’s Consumer Price Index (CPI), a marked slowdown in the core rate of inflation may drag on the loonie and spur a near-term rebound in USD/CAD as it puts pressure on the Bank of Canada (BoC) to further support the real economy. What’s Expected: Why Is This Event Important: Easing price pressures may push ...
Daily price is on secondary rally within the primary bullish market condition: price broke one of Senkou Span line B of Ichimoku indicator to above for the ranging rally to be located inside Ichimoku cloud. The price is testing Senkou Span A line of Ichimoku indicator to above together with 1.3113 resistance level to be reversed to the bullish market condition.Chinkou Span line of Ichimoku indicator is breaking the price to above ...
Trading the News: Canada Consumer Price Index (CPI) Another downtick in Canada’s headline & core Consumer Price Index (CPI) may push USD/CAD to fresh weekly highs as it puts pressure on the Bank of Canada (BoC) to further embark on its easing cycle. What’s Expected: Why Is This Event Important: Even though BoC Governor Stephen Poloz largely endorses a wait-and-see approach for monetary policy, ...
There are two dominant themes that it is important to understand when analyzing the Canadian Dollar from a fundamental standpoint. The first, as its designation as a commodity currency implies, is the fact that exports of natural resources (especially gold and oil) make up a significant part of the Canadian economy. This is important to understand because as Canada is the world's 14th largest producer of oil and 5th largest producer of gold, the price of these and other commodities normally has ...
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