May 062013

6C 06-13 (1 Min)  4_17_2013

4/17/2013 BOC Rate Statement / Overnight Rate (1000 EDT)
Forecast:  1.00%
Actual: 1.00%
Previous Revision: n/a
Started @ 0.9726
1st Peak @ 0.9690 – 1001 (1 min)
36 ticks

Reversal to 0.9751 – 1001 (1 min)
61 ticks

Pullback to 0.9711 – 1145 (105 min)
40 ticks

Notes:  The BOC left interest rates unchanged and cited gradual growth in the US, continued recession in Europe, and stabilizing growth in China.  This matched the forecast of leaving the rate unchanged, but caused an indecisive reaction with an initial short spike of 36 ticks followed by an immediate reversal of 61 ticks.  On the short move, it eclipsed the S3 Pivot and extended the LOD, then it reversed to cross all 3 SMAs and eclipse the S2 Mid Pivot.  With JOBB, you would have filled short with 4 ticks of slippage at 0.9715, then seen it briefly hang out in the green for a few sec before reversing to stop you out with a 20 tick loss.  Then it came back to settle close to the origin and drifted slightly lower on the following bars around the S3 Mid Pivot.  Then it chopped sideways.