Bank of Canada’s Wilkins Hints at Hikes and Drops USD/CAD as a Result

I’m back in the office following yesterday’s Queen’s birthday holiday in Australia.

But it wasn’t even the Queen’s birthday, I hear you say?

“The day has been celebrated since 1788, when Governor Arthur Phillip declared a holiday to mark the birthday of King George III. Until 1936 it was held on the actual birthday of the Monarch, but after the death of King George V it was decided to keep the date at mid-year.”

Ah yes, of course…

Even the most hardened Australian republican enjoys being part of the British Commonwealth when they’re so generously gifted a long weekend.

God Save the Queen! 🙂

Now moving onto markets and speaking of British Commonwealth countries, it was the Canadian Dollar making headlines with a rip in Asia today. It was the Bank of Canada’s Carolyn Wilkins that hit the newswires with a speech that wasn’t even marked on a lot of forex calendars and she had USD/CAD in the firing line.

“…BoC would need to take appropriate action.”

That’s all that forex markets needed to hear and is a clear hawkish shift by the BoC moving forward.

Goodbye USD/CAD.

USD/CAD 5 Minute:
Click on chart to see a larger view.

Now with today’s comments not being scheduled on most economic calendars, there will be plenty of you (including myself), who missed the early boat on any potential shorts.

This is where looking for areas of interest on pullbacks comes into play.

USD/CAD 4 Hour:
Click on chart to see a larger view.

On the above 4 hour chart, I’ve marked a couple of these areas to watch out for, if price does in fact pull back.

Keep an eye on the @VantageFX Twitter account for intraday charts as the setup unfolds, and don’t be afraid to mention us if you share a chart of your own.

Safe trading!

Dane Williams – @VantageFX

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Source: Vantage FX Blog