What does the data mean to the market?
Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.
Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the CAD, while a lower than expected rate is negative/bearish for the CAD.
Historic deviations and their outcome
March 4 2020 A surprise cut by 0.75% however with the global pandemic taking hold around the world it was no surprise this only saw a 60 pip move.
See the report history here https://calendarapi.galaxysoftwarei...C0wMy0wNCUyMDE1OjAwOjAwLjA7cz1VU0RDQUQ7cj1NMQ
I will use forecasts of:
Interest Rate 0.25
Today's trade plan
All economists stand unanimous that the rate will remain at 0.25% today therefore a change in either direction would make for an amazing move which I would expect to continue for some time.
Hope this helps but please do your own analysis!!
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