CAD Down before Central Bank Meeting

The Canadian dollar was falling slightly yesterday and today against the other world currencies as the traders expected the interest rate decision of the Bank of Canada monetary policy meeting, which is scheduled for 22nd of April.

The total drop of the Canadian dollar (or so called Loonie) against the U.S. dollar this year is at 1.6% after a 17% gain last year. The drop increased this week as the Bank of Canada is expected to lower the key interest rate from 3.5% to 3.0% on its meeting today. The current interest rate in U.S. is 2.25%.

The market is expecting not only a 50 basis point cut in Canada, but also a statement that will support confidence in further cuts by the BoC.

The last interest rate cut was performed on March 4 — it was reduced from 4.0% to 3.5% and the statement signaled that the central bank has now entered a cutting cycle. The present consumer inflation rate in Canada is quite low, thus allowing more loose monetary policy.

USD/CAD rose from 1.0064 to 1.0072 today on Forex, while CAD/JPY pair declined from 102.59 to 102.37.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.