BOC Up Next The big focus over today’s US session will the BOC April rates meeting. Following a firmly hawkish shift by the Fed, and a larger-than-expected hike from the RBNZ, the market is now braced for further fireworks today. In light of firmly hawkish signals from the BOC, solid employment and rising inflation, the market is widely expecting a .5% hike.With such a move priced in, the focus will be on the guidance and rate-path projections for the remainder of the year. With inflation soaring globally, should the BOC signal that further hikes (especially of a similar size) are coming, this should keep CAD well bid. However, if the BOC signals that such an aggressive hike is intended to allow for smaller hikes or a slower pace of hikes over the rest of the year, this will likely weigh on CAD.Where to Trade BOC Meeting?NZDCADNZDCAD has broken from the recent triangle pattern to the downside. With both MACD and RSI bearish, and with the retail community building its long position, there is plenty of room for the pair to move lower still if today’s meeting is bullish for CAD. Bears can look for a break of .8553 targeting .8475 initially and .8351 thereafter.
Source: Tickmill
