A1 Trading

Big Bank of Canada Upset

October 26, 2022
Michael J. Donoghue
Big Bank of Canada Upset

There was a big Bank of Canada upset this morning: at 10 am Eastern Time, the Bank of Canada (BoC) issued their latest Monetary Policy Report and announced their new Overnight Rate, a key interest rate. While another 75 basis point rate hike had been forecast, the hike was instead a mere 50 basis points, a shocking move away from the BoC hawkishness displayed earlier this year. This is a bearish development for the Canadian Dollar and appears to mark a distinct tonal shift from the BoC as recession concerns mount for the recently aggressive central bank. Though CAD’s status as a commodity currency may permit rising oil prices to temper any subsequent selloffs, the case for CAD bearishness in terms of fundamentals is now more compelling in light of the BoC’s now-lukewarm tightening efforts.

Top Pairs to Buy

According to the EdgeFinder, A1 Trading’s market scanner, the following two pairs are designated as optimal to watch for those interested in shorting CAD. They are listed below with their respective ratings, signals/biases, and corresponding charts.

1) NZD/CAD (Receives a 5, or ‘Buy’ Signal)

Big Bank of Canada Upset
Big Bank of Canada Upset

2) USD/CAD (Receives a 3, or ‘Buy’ Signal)

Big Bank of Canada Upset
Big Bank of Canada Upset

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