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Bank of Canada rate decision in focus today

With so much emphasis and focus on the US CPI report today, it is easy to overlook the Bank of Canada (BOC) policy decision that comes after that US data. At 2.45pm GMT the BOC are widely expected to keep the current OCR (Official Cash Rate) on hold, at 5%. That is the overwhelming consensus amongst leading analysts, but this is a live event nonetheless. That is because there is clear evidence in the latest Canadian economic data, that prices and activity are slowing. That said, the recent gains in oil and some commodity prices are likely to see increased price pressure across the G10 space going forward. So, first the USD/CAD might react to the US CPI data, from the US dollar side of the equation. iI will then react to any surprise from the BOC. As to whether that is a one-dimensional move, or a spike/slide one-way, which then gets pushed back, is open to debate right now. The conclusion on that, is to alert the reader of the potential for some fluid price action and volatility in the USD/CAD later today and all the risks and opportunity that might provide. The USD/CAD closed lower last night, at 1.3571. It is currently trading at 1.3565 
 

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