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6/5/2012 BOC Rate Statement / Overnight Rate (0300 HI time / 0900 EDT)
Forecast: 1.00%
Actual: 1.00%
Previous Revision: n/a
INDECISIVE
Started @ 0.9607
1st Peak @ 0.9583 / Reversal to 0.9630 – 0301 (1 min)
-24 ticks / 23 ticks
Final Peak @ 0.9648 – 0408 (68 min)
41 ticks (2x top)
Reversal to 0.9594 – 0554 (174 min)
54 ticks
Notes: The BOC left its main interest rate unchanged today, citing broad based weakening in Europe the US, and Asia. The lack of action coupled with the jitters in the market caused initial indecision. The BOC was 2nd in line behind the RBA and before the FED to make announcements on central bank policy. With JOBB, you would have filled short, then stopped out immediately on the impending reversal. After the initial indecision, the market settled into a choppy uptrend using the 50 SMA as a floor to achieve a 2nd peak of 41 ticks about 1 hr later. Then it reversed for 54 ticks in a little less than 2 hrs fighting through all 3 major SMAs and the PP Pivot.