Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Will the BOC bring a challenge to the CAD traders?
Information is not investment advice
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.
The rate statement is the necessary element of a monetary policy conducted by the central bank in the country. It contains the interest rate, which is the interest of borrowing funds by the major financial institutions. The Bank of Canada set its interest rate at 1.75% and is forecast to keep it unchanged during the upcoming meeting. The main focus of the market will be on the statement, which will provide the projections for the economic conditions of Canada and make investors think about the future changes to the interest rate. The recent data brought relief to the CAD bulls: the unemployment rate fell to 5.6%, while the inflation levels remain high enough to shrug off the doves. Will we see some kind of surprise during the meeting?
• If the BOC is hawkish, the CAD will rise;
• If the BOC is dovish, the CAD will fall.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.