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It’s a Big Day for the Loonie, with the Bank of Canada and Monetary Policy in Focus

It’s a big day ahead on the economic calendar. While wholesale sales figures and house price figures are due out, the focus is on the Bank of Canada…

Recent GDP numbers support a more dovish outlook, but with the USMCA now in place, there’s the hope of better days ahead. Uncertainty over the Bank of Canada’s stance pressured the Loonie in the early hours, however.

December inflation figures are also due out ahead of the BoC decision, which will garner some interest.

The Loonie was down by 0.15% at C$1.3090 against the U.S Dollar, at the time of writing.

Canada Interest Rate Decision

Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

A higher than expected rate is positive/bullish for the CAD, while a lower than expected rate is negative/bearish for the CAD.

According to Trading Central (3rd party RIA) the GBPCAD could be heading DOWN to 1.6441 if it does not go ABOVE 1.7346

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (200%):Potential Profit/Loss 1.6441
1€ 3,926.19€ 7,852.38€ 4,270.48
5€ 19,630.94€ 39,261.88€ 21,352.41
10€ 39,261.88€ 78,523.75€ 42,704.81
25€ 98,154.69€ 196,309.38€ 106,762.03
50€ 196,309.38€ 392,618.77€ 213,524.05

According to Trading Central (3rd party RIA) the EURCAD could be heading DOWN to 1.4263 if it does not go ABOVE 1.4635

* Past performance is not a guarantee of future performance

Number of Lots:Required Margin:Risk Management (200%):Potential Profit/Loss 1.4263
1€ 3,333.33€ 6,666.67€ 1,552.28
5€ 16,666.67€ 33,333.33€ 7,761.38
10€ 33,333.33€ 66,666.67€ 15,522.75
25€ 83,333.33€ 166,666.67€ 38,806.88
50€ 166,666.67€ 333,333.33€ 77,613.75

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