Bank of Canada maintains overnight rate target at 1¼ per cent | Metals Mine

  • Bank of Canada maintains overnight rate target at 1¼ per cent

    From bankofcanada.ca

    The Bank of Canada today maintained its target for the overnight rate at 1¼ per cent. The Bank Rate is correspondingly 1½ per cent and the deposit rate is 1 per cent. Global economic activity remains broadly on track with the Bank’s April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. Global oil prices have been higher than assumed in April, in part reflecting geopolitical developments. ... (full story)

Comment Options
livetotrade
May 30, 2018 10:25am
Permalink
I hear several people in hear trying to “understand “ the move of the USD/CAD. Please listen from years of experience and what cost me several accounts back in the day. I tried to figure out the news that didn’t make sense for the drops and technical moves that didn’t make sense, and then I finally threw all that in the trash and went with the move and picked my entries and exits based on what I was seeing right at that moment. When you do that and stay away from the greed train and take small profits, you will rest easier, build confidence, and stay in the game longer.
No one in here knows everything, nor do I believe the ones that say oh yea I knew it was going to do that, because those same ones the previous week got their butts handed to them on one they thought they knew but it went the other way. Trade and stay in the moment. I hope this helps someone. When I got away from all the noise I made more money and less losses. I didn’t say I don’t ever lose because I do but the losses are no where even near what they used to be they are only minimal.

Happy Trading Everyone!
Livetotrade
Reply
Trader#E145
May 30, 2018 9:09am
Permalink
Quoting alexflibero
The negative spikes of USDCAD it makes no sense for me.....someone is able to explain ?
That's why:
"Overall, developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target. Governing Council will take a gradual approach to policy adjustments, guided by incoming data. In particular, the Bank will continue to assess the economy’s sensitivity to interest rate movements and the evolution of economic capacity."
Reply
alexflibero
May 30, 2018 9:28am
Permalink
Sorry but it continue to be not understandable.
All the info should drive the USDCAD long and not the contrary.
Looking at this negative spike it seems that the markets expected a cut and not an hike so, remaining at 1.25 USDCAD was short from the large part of traders.
I'm not convinced about that. It seems more a classic event generated by a central bank for reasons that we'll never known
Reply
theoedet
May 30, 2018 9:32am
Permalink
...Overall, developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target. Governing Council will take a gradual approach to policy adjustments, guided by incoming data. In particular, the Bank will continue to assess the economy’s sensitivity to interest rate movements and the evolution of economic capacity....

Take note of the phrase,"further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target".

This appears hawkish to me.
Reply
clockwork71
May 30, 2018 9:51am
Permalink
It stuns me that people still try to trade around the news. That's so 2006.
Reply
mngnglkl
May 30, 2018 9:21am
Permalink
Hawkish tone.

"Recent data point to some upside to the outlook for the US economy." "Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April..." "Overall, developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target."
Reply
Tony112
May 30, 2018 9:17am
Permalink
The importance of condoms. Always use condom stop-loss.
Attached Image (click to enlarge)
Click to Enlarge Name: asdfsdfe3e33.gif Size: 53 KB
Reply
9jatrader
May 30, 2018 9:38am
Permalink
Bloody day for my USDCAD -Tears of blood
Reply
fxx360
May 30, 2018 9:28am
Permalink
Sell the Cad on the spike
There is money to be made
The Canadian economy is in shitz creek ...
Reply
fxx360
May 30, 2018 1:31pm
Permalink
Anyone who has the guts and bought the dip today will be laughing after tomorrow's GDP report.
Reply
Manudatinh
May 30, 2018 10:14am
Permalink
Quoting el_duende
Why long? forget the number posted its what was in the BOC statement that matters.
I am longing USDCAD at this level. It was a really good s/h!
Reply
el_duende
May 30, 2018 9:34am
Permalink
Why long? forget the number posted its what was in the BOC statement that matters.
Reply
Lethalpips
May 30, 2018 9:05am
Permalink
Quoting alexflibero
The negative spikes of USDCAD it makes no sense for me.....someone is able to explain ?
look at the structure ignore the news. downside was expected.
Reply
Prof.Trader
May 30, 2018 9:09am
Permalink
Canada overnight rate still on Economist Forecast at 1¼ per cent...
There is no something change...

Some of Investor will dissapointed with this...
Because of They think BOC will make a surprise with lift the Overnight rate to 1,5% today...

And next month data will make BOC dissapointed...
Because of Oil price was weaker than last month...
So, Canada CPI will slowing down too for next month...
Reply
Kandi Trader
May 30, 2018 9:19am
Permalink
Yes. there was a previous increase for Cad's interest rate - if the rate were to be lowered the Usd could have seen a bull spike, but since it was the same (as the previous increase) Cad were favorite
(increase in Cash Rate = Bullish)
Reply
JesusProphet
May 30, 2018 9:38am
Permalink
Quoting alexflibero
Sorry but it continue to be not understandable. All the info should drive the USDCAD long and not the contrary. Looking at this negative spike it seems that the markets expected a cut and not an hike so, remaining at 1.25 USDCAD was short from the large part of traders. I'm not convinced about that. It seems more a classic event generated by a central bank for reasons that we'll never known
the italian crisis making money go out of the market
Reply
Onyebuchim
May 30, 2018 10:07am
Permalink
Quoting clockwork71
It stuns me that people still try to trade around the news. That's so 2006.
You're right but it still works like magic........

Attached Image (click to enlarge)
Click to Enlarge Name: Image1.jpg Size: 1 KB
Reply
PatientlyUp
May 30, 2018 10:42am
Permalink
You look at UCad and see its been rising past few days. Which means alot of people are long and stops are below the markert. Smartmoney knows where the stops are, they get paid on taking out stops. That simple
Reply
missH
May 30, 2018 10:46am
Permalink
wow
Reply
SPeedFANat1c
May 30, 2018 11:51pm
Permalink
nwedepius - how do you know it was at suply zone?
Reply
xoc001
May 30, 2018 11:05am
Permalink
usd is broken today
-probably waiting for nfp
Reply
alexflibero
May 30, 2018 9:03am
Permalink
The negative spikes of USDCAD it makes no sense for me.....someone is able to explain ?
Reply
JesusProphet
May 30, 2018 9:04am
Permalink
sell for usdcad package..................
Reply
Omoba
May 30, 2018 9:06am
Permalink
Hawkish
Reply
shokh
May 30, 2018 9:06am
Permalink
it was predictable target and normal situation for BOC
Reply
JesusProphet
May 30, 2018 9:07am
Permalink
Quoting alexflibero
The negative spikes of USDCAD it makes no sense for me.....someone is able to explain ?
funmental , its not good for usdcad
Reply
Trader#2ACD
May 30, 2018 9:11am
Permalink
Likely because of this : "Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April..." An optimistic forcast of higher inflation in the future drives CAD up.
Reply
Micc23
May 30, 2018 9:12am
Permalink
Wow. A 100 pip drop on USDCAD even though the rate was unchanged?
Reply
JesusProphet
May 30, 2018 9:27am
Permalink
the italian crisis making money go out of the market
Reply
JesusProphet
May 30, 2018 9:39am
Permalink
Quoting el_duende
Why long? forget the number posted its what was in the BOC statement that matters.
long for interest rate differential. this not for scalpers
Reply
Lethalpips
May 30, 2018 10:58am
Permalink
Quoting PayBack
I was short and I was purely relying on my charts. it came out positive for me.
chart is the only thing trader should rely on.
Reply
Trader#EBD3
May 30, 2018 11:54am
Permalink
I am curious why people act so suprised? You are looking at the BOC rate statement and ignore that USD GDP came short of expectations? The only thing that would have kept the USD at that level after the GDP news would have been if BOC would have lowered rates. As many people state above you meed to follow the charts and understand also how news impacts these momentum swings. I expect that if CAD GDP comes out as forcasted tomorrow the USD will fall some more
Reply
Reaver1911
May 30, 2018 1:58pm
Permalink
Quoting fxx360
Anyone who has the guts and bought the dip today will be laughing after tomorrow's GDP report.
hahaha that's called gambling my friend
Reply
nwedepius
May 30, 2018 7:21pm
Permalink
Not much interested in their fucking manipulative news was already short on usdcad before the news cos it was @ a supply zone
Reply
  • Story Stats