Canadian dollar is trading mixed in Asian session today, as markets await BoC rate decision. No change in monetary policy is expected as overnight rate will be kept at 0.25%. There might be some adjustments in the asset purchases program but the fine-tuning has already started earlier this month. BoC is also expected to reiterate the pledge to maintain the current accommodative monetary policy stance.
Suggested readings on BoC:
CAD/JPY’s decline from 80.60 is accelerating downward today, partly on overall risk aversion. The current development suggest that CAD/JPY is still staying in the third leg (started at 81.58) of the pattern from 81.91. Focus is immediately on trend line support (now at 78.90). Break there will affirm this view and bring deeper fall through 78.36 support, to 100% projection of 81.58 to 78.36 from 80.60 at 77.38.
