OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex: USD/CAD in session lows, around 1.0210/20

FXstreet.com (Barcelona) - The Canadian dollar is trading firmly against its neighbour on Tuesday, dragging the cross from highs around 1.0260 to the current area of 1.0210/20, retesting session lows.

Ahead of tomorrow’s BoC monthly gathering, Strategists B.Kim and B.Daingerfield at TD Securities commented, “In our opinion, the data since the 6 March decision is not enough to warrant a material change in policy in either direction. We also do not think the data in the past quarter is enough to cause BoC officials to dramatically alter their outlook in the quarterly Monetary Policy Report (MPR), which will be released at the same time”.

At the moment, the pair is down 0.31% at 1.0220 with the next support at 1.0184 (MA21d) ahead of 1.0165 (MA10d) and finally 1.0074 (low Apr.11).
On the upside, a break above 1.0265 (high Mar.22) would expose 1.0285 (high Mar.19) and then 1.0295 (high Mar.13).

Forex Flash: CBRT surprises with wider rate cut than expected, by 50bp to 5% - TD Securities

TD Securities analysts reported the widely expected repo rate cut by the CBRT decided at their April 16th meeting. “They cut 50bp to 5.00% instead that 25bp we and the consensus had expected. The CBRT also slashed the overnight rate corridor (both lending and borrowing rates) by 50bp, in line with our forecast (consensus looked for -25bp on the lending rate and -50bp for the borrowing rate)”, wrote analyst Cristian Maggio, considering it a strong message to the market that short-term rates should be lower, hence the lira weaker. “The market was positioned for a dovish outcome, but the combined CBRT measures came in even more loose than expected”, continued Maggio, adding that the CBRT also decided to withdraw additional liquidity by increasing the ROCs by 0.2 on all tranches but the first one of FX reserves commercial banks hold at the CBRT. “The effect should be $1.4bn of liquidity drained from the market”, he concluded.
Read more Previous

Forex: USD/CHF falls back to weekly lows

After being rejected by the 0.9325 area, USD/CHF resumed the downside and retested this week's lows, although the Swissy lacked strength enough to drag the cross below the 0.9260/65 support zone.
Read more Next
Start livechat