CANADA/DOLLAR-CANADA: The BOC will announce any monetary policy
changes at 9;00 am ET, with the overnight rate target expected to be
unchanged at 1.0%. However, there is scope for the central bank to alter
the accompanying statement, by dropping the tightening bias. George
Davis, chief technicals analyst at RBC Capital Markets, is watching the
200-day moving average, which comes in at C$0.9998. A daily close above
that level "is required to trigger a bullish trend reversal that would
indicate that an important shift in sentiment is underway (and prompt us
to reassess our bearish view)," he says. RBCCM's medium term target is
currently C$0.9700. For the corrective phase to be over and
dollar-Canada's downtrend to continue, the "triangle base at C$0.9809
will need to be taken out," Davis says.
CANADA: Bank of Canada leaves o/n rate unchanged at 1%.
Sees modest rate hikes "over time."
Statement is at;
http://www.bankofcanada.ca/2012/10/pres ... 012-10-23/
DOLLAR-CANADA: Skidded to C$0.9910 area after BOC dashed the hopes of
doves, keeoing "some modest withdrawal of monetary policy stimulus will
likely be required, consistent with achieving the 2 per cent inflation
target. The timing and degree of any such withdrawal will be weighed
carefully against global and domestic developments, including the
evolution of imbalances in the household sector," in its statement.
