Home Forex Forex Market Analysis Market Update: BoC Keeps its Overnight Rate Target Unchanged

Market Update: BoC Keeps its Overnight Rate Target Unchanged

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BoC release

The bank of Canada has released its  overnight rate, keeping it at the same level with 1.25% As all economists had recently expected that rate to remain unchanged.

“Inflation in Canada is close to 2 percent as temporary factors that have been weighing on inflation have largely dissipated” (source: BoC release note).

The market has its own response to slipping of the Canadian dollar, as the decision was already priced in, so most of the traders started to open short positions.

UK Inflation

On the other hand, UK Inflation Drop Poses a Challenge For Bank of England. As CPI released with 2.5% despite its forecast with 2.7%

This diagram shows UK inflation

 

 

CAD/CHF

On the daily chart, the price has reached a well demand area. As it rebounded from the lower trendline connecting the highs, also from the broken upper trendline connecting the lows, and finally the resistance zone (0.7615-0.769)

The pair had its bullish rally to approach the B point of the harmonic pattern.

After reaching 61.8& Fibonacci & moving average 200, the price is expected to go down to meet 0.759 then 0.75

 

 

CAD/JPY

On the daily chart, the price couldn’t go further after rebound from the main resistance 85.55

It’s a combination of demand level & 50% Fibonacci

After reaching an overbought area in RSI and forming pin bar, the price is expected to go down to retest 83.5

 

 

 

EUR/GBP

On the daily chart, the pair has a tight movement for seven months. Between then levels 0.867 & 0.901

The price reversed from the support level after making a false break

With two bullish candles & oversold in RSI, we should wait until the lower channel is broken up to reach the next target at 0.879

 

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