Bank of Canada Meeting (Possible change of the Refinancing Rate)

USDCAD. Bank of Canada Meeting (Possible change of the Refinancing Rate) (13 July 14:00 GMT)

The Canadian dollar is a commodity currency. Last week the price of Oil was under pressure and went down to almost $45. Low Oil prices are having a negative effect on the Canadian dollar and on Canada’s economy in general, which stalls the necessary economic reform and hinges its growth.

At this point lowering the refinancing rate in Canada seems improbable. Traders will most likely be paying attention to BoC’s comments on the current state of the economy and their plans for its development.

Crude Oil price is another massive factor that has an impact on the value of Canadian Dollar. Oil price decreased by 8% last week and it has a negative impact on CAD.

USDCAD chart:

There was an uptrend on USDCAD D1 chart last week. The rate hit the line of resistance (highlighted with orange) and dropped.

According to the indicator of technical analysis “CCI” the indicator got to the overbought line and traders should be accurate with the signal. If the value of this indicator keep increasing there will be a further uptrend and in the opposite case – downward correction is expected on the price chart.