How Will the BoC's Decision Affect the Currency Market?
FXOpen
The USD/CAD pair has been strengthening for the third consecutive week and is currently approaching the upper boundary of the three-month range of 1.3850-1.3600. The strength of the pair's buyers is quite significant, which could lead to a consolidation above 1.3850 and a continued rise towards the psychological level of 1.4000. However, the news background for the upcoming trading sessions is so saturated that it could lead to either a strengthening of the current trends or the formation of reversal patterns:
- today at 16:45 (GMT+3) the release of the US Services PMI for July;
- today at 16:45 (GMT+3) the Bank of Canada’s interest rate decision;
- today at 17:00 (GMT+3) the Bank of Canada’s press conference;
- today at 17:00 (GMT+3) the release of US New Home Sales data for June.
Experts surveyed by Reuters suggest that the Canadian regulator will not only cut the rate by 0.25% at today’s meeting but may also announce two more rounds of rate cuts by the end of the current year.
Technical analysis of the USD/CAD pair indicates the possibility of further growth, as the “hammer” pattern formed on 11th July remains relevant on the daily timeframe. In the event of a rebound from 1.3850, a corrective decline to 1.3760-1.3730 is possible.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Weekly Market Insights with Gary Thomson: BoJ, Fed, and Geopolitics
In this video, we’ll explore the key economic events and market trends, shaping the financial landscape. Get ready for insights into financial markets to help you navigate the week ahead. Let’s dive in!
In this episode of Market
Bitcoin Analysis: Iran Peace Deal Sparks Hope — Is Bitcoin Ready to Bounce?
After months of uncertainty and escalating tensions, the United States and Iran have reached a peace agreement that includes the reopening of the Strait of Hormuz. The deal appears solid for now, though markets remain cautious — particularly given President Trump's
Nikkei 225 Strengthens Ahead of the Bank of Japan Decision
Investors are focused on the Bank of Japan's policy meeting on 16 June. According to a Reuters survey published on 10 June, the majority of economists expect the benchmark interest rate to be raised to 1% — a level not seen