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Bank Of Canada interest rate decision Trading for USDCAD

April 14, 2015 8:25 pm

At the time of writing USDCAD pair is trading at 1.2454 after weak US data the pair has dropped almost 140 pips after the release of poor US data now how to trade tomorrows BOC interest rate decision will BOC cut the interest rates like they did on 21 Jan ? If we compare the 

Macroeconomic Data  Canada USA
BoC Interest Rate Decision 0.75% 0.25%
Consumer Price Index (MoM)  0.90%   0.20%
 BoC Consumer Price Index Core (MoM)  0.60%  0.20%
 Gross Domestic Product (MoM)   -0.10%  2.20 (Annual)
 Unemployment Rate   6.80%  5.50%
 Retail Sales (MoM)  -1.70% 0.9%

This comparison clarify the picture in last month weak economic figures from Canada has pushed the USDCAD pair upward, last month fall in oil prices has effected the economy of Canada presently stabilization in oil prices has favored the Canadian dollar tomorrow BOC is likely to maintain its interest rate at 0.75% keep an eye on economic calendar if interest rate remain same USDCAD pair will drop 40 to 70 pips and if rates are cut to .50% than 100 to 150 pips upward moment is expected in the pair.

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