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USD/CAD Signal - BoC Rate Decision - 07 Dec 2016

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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The Bank of Canada's monetary policy meeting is due later this afternoon. No changes are expected to the interest rate decision with the central bank being seen holding rates steady at 0.50%. USDCAD fell to a 30-day low on Monday, briefly dipping below 1.3250 before recovering slightly.

Price action currently shows an inside bar formed, which could set the near term direction in the currency pair. While the central bank is expected to keep rates steady, it could take a dovish stand, especially after trade deficit data is expected to show no real influence on the fourth quarter GDP numbers. This will likely see the BoC maintain an easing bias that could be bullish for USDCAD.

It is ideal to purchase daily PUTS near 1.3285 region with an expiry time of 21:00 GMT as the bias remains to the upside heading into the BoC's policy meeting later this evening. The short term strength in the U.S. dollar should also attribute to the upside bias. However, expect to see some volatility as the weekly Crude oil inventories will be released later today.

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.