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Canadian Dollar Saw Strong Buying Ahead Of BoC

Published 01/27/2022, 01:59 PM
Updated 07/09/2023, 06:31 AM
USD/CAD
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EUR/CAD
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The Canadian dollar can often move strongly ahead of key fundamental data, and yesterday was no exception ahead of the Bank of Canada interest rate decision where traders were happy to buy the currency. This produced a really nice trend in EUR/CAD which came to pause at the New York forex open and potential reversal as the New York session got underway.

However, as traders, we have to be mindful that we will get caught up in whipsawing and volatility in placing intraday trades before such risk events. Much better to wait and confirm the direction before jumping in.

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