The Bank of Canada announced its verdict on monetary policy. As widely expected, the Central Bank did not change the level of the key interest rate, leaving it at 0.25%.
The text of the accompanying central bank statement noted:
The Bank continues to pursue an aggressive communication policy backed and augmented by a QE program that will continue to be implemented at the current rate of C$4 billion per week;
The global and Canadian economic recoveries are mostly in line with the Central Bank's October expectations;
Economic momentum in Q4 seems stronger than projected in October;
Rates will not rise until at least 2023.
Our Analysis:
Provided that the currency pair is traded above 1.2730, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.2730
- Take Profit 1: 1.2750
- Take Profit 2: 1.2770
Alternative scenario:
In case of breakdown of the level 1.2730, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.2815
- Take Profit 1: 1.2675
- Take Profit 2: 1.2650
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