Dec 042012

6C 12 12 (1 Min) 12.04.12

12/4/2012 BOC Rate Statement / Overnight Rate (0400 HI time / 0900 EST)
Forecast: 1.00%
Actual: 1.00%
Previous Revision: n/a
Started @ 1.0049
1st Peak @ 1.0074 – 0408 (8 min)
25 ticks

2nd Peak @ 1.0078 – 0446 (46 min)
29 ticks

Reversal to 1.0065 – 0512 (72 min)
13 ticks

Notes: The BOC left interest rates unchanged and cited gradual growth in the US in spite of the impending fiscal cliff, recession in Europe, and stabilizing growth in China. This matched the forecast of leaving the rate unchanged, but the bulls showed up to cause a mild and slow developing spike of 25 ticks in 8 min. The spike crossed all 3 major SMAs on top of each other about halfway up the :01 bar. It briefly stalled on the PP Pivot at 1.0060, before ascending to eclipse the R1 Pivot for the peak. With JOBB, you would have filled long with about no slippage at 1.0055, then seen it stall at the SMAs briefly before finishing the bar with a long move of another 5 ticks to the PP Pivot. If you were patient, you could have gotten at least 5 ticks and as many as 17. It then achieved a minor 2nd peak of 4 more ticks 40 min later before reversing for 13 ticks over an hour later.