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USD/CAD forex signal - Bank of Canada Monetary Policy Decision - 18 Apr 2018

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The Bank of Canada will be holding its monetary policy meeting today at 14:00 GMT. According to the economists polled the Canadian central bank is expected to keep interest rates unchanged at 1.25% at today's meeting.
The expectations for no rate hike come amid increasing uncertainty on trade talks with the United States.

Considering that Canada is the United States' closest trading partner, the uncertainty over tariffs could potentially impact the Canadian export sector.

After President Trump announced the tariffs on steel and aluminum imports, Canada managed to get an exemption. However, a lot of other details still remain to be fixed. This includes the North American Free Trade Agreement or NAFTA to which Canada and the United States, along with Mexico are members.

Canada's export sector forms an important element in the Canadian GDP. Recently, the BoC's business outlook survey released last week showed that Canadian firms were optimistic about the business conditions.

This was in stark contrast to other business surveys from other key economies such as the Eurozone. Business sentiment in the Eurozone was seen weakening on account of the global trade uncertainty. The BoC's monetary policy decision is expected to remain broadly mutual with the central bank expected to come out with a modestly hawkish statement.

Based on the above, today's forex trading signal is USDCAD. The currency pair has been trending strongly to the downside. USDCAD was seen revisiting the familiar support level at 1.2542 level. We expect to see a rebound of prices in the short term.

We are looking to enter long on USDCAD at 1.2550, targeting 1.2620 with stops at 1.2520. We expect to see the rebound off the support level supporting the upside bias in the near term and expect USDCAD to close higher on the day.

forex trading signal usdcad 18 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. 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. All risks and coasts associated with online trading are your responsibility.