TheBOC interest rate decision today comes at a time when CAD is already on themarch due to higher oil prices. With the market expecting the BOC to lift ratesby a further .25%, along with signalling further rate hikes to come, CAD lookswell poised to advance further over the rest of the week. Aside from the risein oil prices, CAD fundamentals have been strong over recent months with the economicrecovery there progressing nicely. What will be key today is to see how thebank judges the risks around the Russia-Ukraine crisis, as well as the outlookfor inflation. If the BOC is seen revising its forecasts higher in light of theoil surge, this will no doubt fuel further heavy buying in CAD near term.Whereto trade BOC Decision? EURCADThepair has been firmly lower since fighting broke out with EURCAD now trading backwithin the bear channel, following an upside break in early Feb. Price is nowtesting below the 1.4167 level support. While below here, focus is on acontinued push lower with 1.4022 and 1.3876 the next targets for bears.
Source: Tickmill
