With Fed minutes, Powell’s testimony and a BoC meeting, it should make for a lively session for traders, with USD/CAD finding itself caught in the crossfire.
Starting with volatility (lower panel) we can see that 1-week historical volatility has dropped as markets await this key date. However, implied 1-week volatility has also risen to show markets do not expect volatility to remain low. Given there are so many moving parts over the next 12 hours between the Fed and BOC, it would be advisable to step aside until a clearer picture emerges from the occasion. Yet what we’re looking for is a clear diversion between the Fed and BOC, which could allow us to expect a sustained bullish or bearish move.
However, whilst we retain our core, bearish view on the daily charts, USD/CAD sits at a pivotal level ahead of Powell’s testimony and BoC’s meeting.
City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, Forex and Bitcoin.Click here to find out more..
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
From the news and opinion pieces on pages like this to
share discussion forums,
charting tools,
financials,
live share prices and
Level 2,
order book data
If you trade or invest ADVFN has the tools you need to make the right decisions.