We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
All Eyes on the BOC’s Rate Decision and Succeeding Comments

All Eyes on the BOC’s Rate Decision and Succeeding Comments

2010-05-31 16:32:00
Michael Wright, Currency Analyst

Fundamental Outlook

The Bank of Canada is expected to raise their key overnight interest rate to 0.50 percent from 0.25 percent on June 1st as Governor Mark Carney recently dropped a “conditional commitment” to leave rates unchanged until July amid inflation and faster-than-expected growth. Indeed, market participants are weighing in a sixty eight percent chance that the central bank will hike rates twenty five basis points tomorrow, according to the Credit Suisse Overnight Interest Rate swaps. It is also worth mentioning that Canada’s largest trading partner; the U.S. is also witnessing an improved fundamental outlook as employment in the U.S. jumped 290K in April, while economists are expecting the labor force to sky rocket 500K in May. This bodes well for trade and may mitigate the effects of a slowdown in Europe.

Taking an in depth look at the fundamental developments from the loonie, economic activity in the first quarter expanded at the fastest pace in nearly a decade on the back of consumer spending and manufacturing. Additionally, private companies added the most jobs in the region in April since 1976, while the unemployment rate fell to 8.1 percent from 8.2 percent in the same period. Furthemore, consumer spending jumped 1.1 percent in the first quarter from the three months through December on the back of semi-durable goods such as footwear and clothing. Nevertheless, the country has benefited from the rise in commodity prices largely due to the fact the Canada is the world’s second – largest exporter of natural gas.

However, it is worth noting that with a rate hike, policy makers may accompany the decision with a dovish statement as growing uncertainties surrounding the European debt crisis continues to linger. If the BOC does indeed decide to raise borrowing costs, it will make the region the first among the Group of Seven to raise rates since last year’s global recession. All in all, Canada’s domestic economy remains in a position of strength.

Technical Outlook


USDCAD: The pair has recently broken above the 200-day SMA which has formed as a line of resistance since May 2009. However, the pair now looks tests this simple moving average for support after paring yesterday’s advance amid better than expected economic activity from Canada. Furthermore, dramatic USD advances led to similarly pronounced moves in FX options market sentiment, leading us to believe that the pair could continue higher through recent trade. Looking ahead to tomorrows rate decision, investors should keep a close eye on the comments following the decision as the technical developments illustrate that this may be an ideal time to go long.

For More Technical Analysis Visit the DailyFX Technical Page

Written by Michael Wright, Daily FX Research
To Receive Future Articles by Email, please contact me at instructor@dailyfx.com
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.