IronFX Daily Commentary by Sakis Paraskevov _ 21/10/2015
October 21, 2015 8:57 am
Main points for Today
• Bank of Canada rate decision following the elections • The September policy meeting statement gave no hint that further accommodation was being considered. • Overall, they seemed to be satisfied with the impact of their recent reduction in rates and happy to remain on hold for some time. • We don’t expect any action at this meeting, but we expect the Bank to keep alive the scenario for further cuts in the foreseeable future. That could leave CAD vulnerable in the medium term. • The majority election win however, has removed the risk of a hung parliament and a prolonged period of uncertainty. Therefore, an optimistic statement and a positive tone in the press conference could provide short-term CAD-long opportunities. • The Bank also releases the updated quarterly economic forecast. • US housing data were moderately upbeat • The number of housing starts rose more than forecast in September, while the more forward-looking building permits fell below expectations • It was the sixth straight month that starts remained above 1mn, pointing to a sustainable housing recovery and even though building permits declined from August, the weakness is likely to be temporary amid strong confidence levels among homebuilders. • Overall, the data showed that the housing sector continues to steadily improve, even though economic growth has slowed recently. • Today: The economic calendar is very light • Speakers: Besides BoC Gov. Poloz, BoE Governor Mark Carney give a lecture in Oxford and Fed Governor Jerome Powell speaks again
Main points for Today
• Bank of Canada rate decision following the elections
• The September policy meeting statement gave no hint that further accommodation was being considered.
• Overall, they seemed to be satisfied with the impact of their recent reduction in rates and happy to remain on hold for some time.
• We don’t expect any action at this meeting, but we expect the Bank to keep alive the scenario for further cuts in the foreseeable future. That could leave CAD vulnerable in the medium term.
• The majority election win however, has removed the risk of a hung parliament and a prolonged period of uncertainty. Therefore, an optimistic statement and a positive tone in the press conference could provide short-term CAD-long opportunities.
• The Bank also releases the updated quarterly economic forecast.
• US housing data were moderately upbeat
• The number of housing starts rose more than forecast in September, while the more forward-looking building permits fell below expectations
• It was the sixth straight month that starts remained above 1mn, pointing to a sustainable housing recovery and even though building permits declined from August, the weakness is likely to be temporary amid strong confidence levels among homebuilders.
• Overall, the data showed that the housing sector continues to steadily improve, even though economic growth has slowed recently.
• Today: The economic calendar is very light
• Speakers: Besides BoC Gov. Poloz, BoE Governor Mark Carney give a lecture in Oxford and Fed Governor Jerome Powell speaks again
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app : http://www.ironfx.com/en/trading-tools/mobile-apps
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
Related Posts: