Is Inflation Defeated?
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
To Hike or Not to Hike?
Information is not investment advice
To Hike or Not to Hike?
Bank of Canada (BOC) will make a statement on December 8, 17:00 GMT+2.
What is happening?
Bank of Canada (BOC) will make a statement on December 8, 17:00 GMT+2. A month and a half ago, BOC surprised investors by abruptly ending its bond-buying program and pulling forward its expected timeline for interest rate rises. As a result, there was a heavy sell-off in Canadian government debt. As for inflation, consumer prices in Canada rose at their fastest rate in 18 years in September 2021, as the country continued to grapple with global supply chain issues.
The annual inflation rate hit 4.7% in October, its highest level since February 2003. It’s logical to hike rates to slow inflation. The Bank of Canada last month signaled it could start hiking rates as soon as April 2022.
Bank of Canada’s next move
Analysts expect BOC to leave the rates on current levels. If the bank doesn’t do something unexpected (hike rates), Loonie will remain weak and may experience a decrease against USD and JPY.
USD/CAD daily chart
Resistance: 1.2820; 1.2950
Support: 1.2550; 1.2450; 1.2310
How to trade on the BOC rate statement?
The main affected pairs are USD/CAD and CAD/JPY.
- If the meeting is more hawkish than expected – CAD will rise, while USD and JPY will fall against it.
- Otherwise – CAD will continue plunging.
Check the economic calendar
Instruments to trade: CAD/JPY, USD/CAD, CAD/CHF
Similar
Who Will Rule the US?
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
Assets Won’t Survive This Week
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Popular
Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
Investor Positivity May Fade After Powell's Speech and CPI Release
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
What Can Rule the Roost in January 2023?
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
Choose your payment system
