Current Fundamentals (Environment).
Bank of Canada Retains 0.5% Interest Rate Target and Lowers Projected Growth and CPI Path/ GDP no surprises, Poloz Scheduled to Speak.
The statement released by monetary official’s projects GDP growth of 1.1% in 2016, down from a prior projection of 1.3%. Growth in 2017 and 2018 have been reduced to 2.0% from 2.2% and 2.1%, respectively. The change reflects slower near-term housing resale activity and a lower export trajectory. Growth is now surpassing potential, but spare capacity will not be eliminated until mid-2018, six months later than assumed in the prior forecast.
Current Fundamentals (Environment)
1. CAD GDP/ BANK OF CANADA GOV POLOZ ANNOUNCEMENT.
2. BOC LOWERS GROWTH AND INFLATION EXPECTATIONS.
3. USD ISM ANNOUNCEMENT.
Recommendation: Short at Fib Red zone retracement levels