Canadian interest rate statement cause the big move?? | Forex Factory

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Canadian interest rate statement cause the big move??

  • #1
  • First Post: Jan 16, 2007 10:25am Jan 16, 2007 10:25am
I just noticed the tremendous Canadian dollar sell off that is happening right now. Does anyone know if there is a statement that goes along with the rate announcment like we have here in the U.S. that could be causing this move?
Profit is where readiness meets Opportunity
  • #2
  • Jan 16, 2007 10:33am Jan 16, 2007 10:33am
I heard they were keeping the rate the same at 9:00 EST. It started to spike at 10:00 and I still don't know why either.
  • #3
  • Jan 16, 2007 10:39am Jan 16, 2007 10:39am
The Canadian dollar sell off is due to the plummetting oil and gold prices today. Oil is down 1.41 and gold is down 2.10.

Northpro
  • #4
  • Jan 16, 2007 10:53am Jan 16, 2007 10:53am
Quoting Northpro
The Canadian dollar sell off is due to the plummetting oil and gold prices today. Oil is down 1.41 and gold is down 2.10.

Northpro
I dont follow oil but that is no big deal for gold. Especially considering friday's gains. However, I understand the the loon is sensative to oil.
Profit is where readiness meets Opportunity
  • #5
  • Jan 16, 2007 10:54am Jan 16, 2007 10:54am
Quoting FXopportunist
I just noticed the tremendous Canadian dollar sell off that is happening right now. Does anyone know if there is a statement that goes along with the rate announcment like we have here in the U.S. that could be causing this move?
they do release a statement after the decision tho, so im sure in conjunction with the oil plummetting they helped each other
Ghost Swoopen in for my pips while no one is lookin !!
  • #6
  • Jan 16, 2007 11:00am Jan 16, 2007 11:00am
Quoting FXopportunist
Does anyone know if there is a statement that goes along with the rate announcment like we have here in the U.S. that could be causing this move?
yeah BOC puts out a statement, its here:

http://www.bankofcanada.ca/en/fixed-...te_160107.html
Relax and be happy.
  • #7
  • Jan 16, 2007 11:05am Jan 16, 2007 11:05am
Quoting merlin
yeah BOC puts out a statement, its here:

http://www.bankofcanada.ca/en/fixed-...te_160107.html

Excellent Merlin, thanx.
Profit is where readiness meets Opportunity
  • #8
  • Jan 16, 2007 11:22am Jan 16, 2007 11:22am
After reading that statement, the thing that jumped out at me was the fact that they said core inflation was at 1% and their target is 2%. When you strip away the statement of optomism for the 2nd half of the year. I am left with that statement of fact.

Based on the the above the fact that the dollar gained ground against the loon is logical to me.
Profit is where readiness meets Opportunity
  • #9
  • Jan 16, 2007 1:19pm Jan 16, 2007 1:19pm
Quoting FXopportunist
I just noticed the tremendous Canadian dollar sell off that is happening right now. Does anyone know if there is a statement that goes along with the rate announcment like we have here in the U.S. that could be causing this move?
it's the oil stupid!
(just a saying, no offence

the oil price drop triggered the move and f*cked the Cad$ too, BOC statement itself had nothing to do with what happened today; better keep an eye on those saudis gaudis from now on..
"Everybody needs money. That's why they call it money" - Danny De Vito
  • #10
  • Jan 16, 2007 1:25pm Jan 16, 2007 1:25pm
I think it was a combination of both with continued lower lows in oil paving the way. I'm just glad I was long from 151.00 on the EUR/CAD. It has been sitting on those lows since Friday in waiting.
Trade what you see - Not what you think
  • #11
  • Edited 1:58pm Jan 16, 2007 1:31pm | Edited 1:58pm
Quoting slide
it's the oil stupid!
(just a saying, no offence

the oil price drop triggered the move and f*cked the Cad$ too, BOC statement itself had nothing to do with what happened today; better keep an eye on those saudis gaudis from now on..
It is not too late to edit your post to make it less offensive.
If you will take a moment to read around Forex Factory you will find that type of post a little out of place.

Thanx,
FXO
Profit is where readiness meets Opportunity
  • #12
  • Jan 16, 2007 1:34pm Jan 16, 2007 1:34pm
It's not a combination. There were some analyst expecting a rate cut so a hold is actually a bullish move since the market is expecting a cut early this year. It's all about the oil. For those of you who don't know CAD has the second largest oil reserves afte the Saudis. If you look at the CAD/JPY and USD/CAD charts compared to oil prices they move very close together. Oil was at a crucial support level yesterday so the fact that it went down further today indicates there might be some more oil selling in the near future. The US temperatures have been at record levels so oil reserves are building. Until the temperature gets back to normal, a critical event in the middle east or OPEC does a serious cut in production oil will keep going down and so will the CAD.

http://www.dailyfx.com/export/sites/..._special_2.gif

http://www.dailyfx.com/export/sites/..._special_3.gif
  • #13
  • Edited 1:41pm Jan 16, 2007 1:40pm | Edited 1:41pm
Lower oil prices and a dovish remarks caused the CAD dollar to fall further.
Interest rates are a factor will all currencies. Besides you're still learning!

Nice charts tho
Trade what you see - Not what you think
  • #14
  • Jan 16, 2007 2:02pm Jan 16, 2007 2:02pm
Quoting FXopportunist
I just noticed the tremendous Canadian dollar sell off that is happening right now. Does anyone know if there is a statement that goes along with the rate announcment like we have here in the U.S. that could be causing this move?
The Bank of Canada has statement but another important site for CAD news is stat Canada

http://www.statcan.ca/start.html

who will post the result of a news a few short seconds after it comes out (just about anything that is not interest rate) with a statement. However you must press your reload button a few times.
  • #15
  • Jan 16, 2007 2:30pm Jan 16, 2007 2:30pm
I could not explain it any better migamb CAD dependency upon oil/gas price, add just this: with no OPEC meeting until March 15 as expressed by the Saudi minister, supply will be steady, and the oil price is likely to continue to fall or depend upon the weather, and this situation will continue to favor the USD and hurt the CAD et over al.

the key today was the Saudi oil minister's voice not the BOC statement, LOL
that's because it came after the Venezuela and Nigeria had asked OPEC to cut production.

FXO you made my day, that was a piece of folklor again, not an offence to you, really.., it's good to have some fun after a day of losses;;
"Everybody needs money. That's why they call it money" - Danny De Vito
  • #16
  • Last Post: Jan 16, 2007 2:41pm Jan 16, 2007 2:41pm
You and migamp make a good arguement and you're probably correct in your assumption. From a trading standpoint, I think it's likely that once the interest statement was released we saw the spike. Coincidence in timing?? I don't think oil prices will dip much below $50 before speculators turn bullish again. just my thoughts-

Quoting slide
I could not explain it any better migamb CAD dependency upon oil/gas price, add just this: with no OPEC meeting until March 15 as expressed by the Saudi minister, supply will be steady, and the oil price is likely to continue to fall or depend upon the weather, and this situation will continue to favor the USD and hurt the CAD et over al.

the key today was the Saudi oil minister's voice not the BOC statement, LOL
that's because it came after the Venezuela and Nigeria had asked OPEC to cut production.

FXO you made my day, that was a piece of folklor again, not an offence to you, really.., it's good to have some fun after a day of losses;;
Trade what you see - Not what you think
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