FX Market Insight for the 22nd January 2020
Brad, did the CAD move lower because the BOC opened the door for future rate cuts? It moved pretty quick, how would you know that just from the econ monitor in Xenith.
And did it have anything to do with the US home sales number coming out strong..?
Canadian CPI was much weaker than expected. Combine that with Dovish comments (which you would expect following weaker CPI) and you get a serious one-way move. It does open the door for potential rate cuts.
Reading this is tricky. We will explain it all at the Workshop. This is the gel, the special ingredients, you just can't get from the online course. It will all make sense after I've gone through it thoroughly at the Workshop.
Yeah I’m looking forward to the workshop. The timing is what threw me off. The CPI came out and then an hour and a half later the rate decision which didn’t change. That’s when it really dropped like within 3-5 minutes. I felt like I had missed something LOL
When there is no change in rates expected it always comes down to the Statement & Press Conference. Many traders switch off once they see 'no change' but that's when the fun really starts.