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USD/CAD binary signal - BoC President Poloz Speech - 23 Apr 2018

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Signal details
Entry Price: 
1.2750
Close Price: 
1.2847
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The Bank of Canada's governor, Stephen Poloz is scheduled to speak later in the day today at 19:30 GMT. Governor Poloz's speech comes following the Bank of Canada's decision to leave interest rates rates unchanged at its monetary policy meeting that was held last week.

The Bank of Canada had hiked interest rates three times so far, bringing the Canadian key interest rates to 1.25%. The central bank was pursuing an aggressive monetary policy tightening program previously following an increase in economic activity and growth in inflationary pressures.

However, the central bank was seen toning down its hawkish language following uncertainties surrounding trade and other factors. Canada, which is part of the North American Free Trade Agreement (NAFTA) has voiced its concerns following the U.S. President Trump's threats to pull out of the trade deal.

Economic growth in Canada has remained broadly modest. However, in recent times the export sector was hit due to the increase in the exchange rate appreciation of the Canadian dollar. As a result, growth was seen slowing. Last Friday, the inflation data from Canada showed that consumer prices also eased during the month.

While the central bank had left interest rates unchanged, the BoC signaled that further rate hikes are due later this year. Therefore, in this context today's speech by Poloz could offer more clues for the markets on the timing of the next rate hike and the inherent risks to policy tightening.

Based on the above, today's binary options signal is USDCAD. The currency pair was seen posting strong gains last week. However, with price action failing to post any pullback, we expect to see USDCAD turning weaker in the near term.

Therefore, we are looking to purchase daily PUT options in USDCAD at 1.2750 for a 21:00 GMT expiry time. We expect the USDCAD to retrace the gains from last week and close lower on the day.

binary options signal usdcad 23 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.