Bank of Canada expected to keep rates unchanged at 10 AM ET
The Bank of Canada is expected to keep rates unchanged at 10 AM ET. The market wil be watching to see if the BOC sticks out for yet another month with the current forward guidance i.e. the final paragraph of the policy statement:
Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range. Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook. With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets, and global trade policy.
Here is the last rate announcement, and a preview from Adam.
Technically, the price trades toward the recent highs in the 1.3450-65 area (see daily chart above). We currently trade just below that area at 1.3446. If the price breaks above those highs, the door opens for more upside momentum. The high from 2018 came in at 1.36637. A topside trend line comes in at 1.3570.
ON the downside, a move back below the 1.3400 level (see the ceiling from April at that level - red numbered circles), would change sentiment more to the downside with the 100 day Ma at 1.3338 area as a key target. The low this week stalled ahead of the MA line.
Drilling to the hourly, the 1.3395-1.3402 is swing high levels from April. The 50% of the move up from the low this week is also in that area increasing the levels importance.
