-041712.jpg "Click to enlarge")
4/17/2012 BOC Rate Statement / Overnight Rate (0300 HI time / 0900 EDT)
Forecast: 1.00%
Actual: 1.00%
Previous Revision: n/a
UPWARD FAN
Started @ 1.0029
1st Peak @ 1.0080 – 0301 (1 min)
51 ticks
Reversal to 1.0059 – 0303 (3 min)
21 ticks
“Final” Peak @ 1.0125 – 0456 (116 min)
96 ticks
Reversal to 1.0102 – 0556 (176 min)
23 ticks
Notes: The BOC left its main interest rate unchanged today, citing an upbeat forecast of growth in Canada, the US, and even Europe. The markets liked the dovish sentiment and traders were buying. With no SMA to contend with on the rise, the spike easily sliced through the R2 Pivot on its way for over 50 ticks. After that, it reversed for 2 minutes, then resumed buying achieving a new high every few minutes for the next 2 hrs. The final peak of 1.0125 had not been seen since 3/2/12. As a long term reaction is common on this report, keep an eye on how it interacts with the 50 SMA after 0400 from the sideline. The strong support at 1.0088 would indicate another good long opportunity with 30+ ticks potential. The reversal did not want to come as the bears were kicked off the field until 2 hrs after the report and only yielded 23 ticks in 1 hr.