Greetings once again, Everyone!
As expected, The Bank of Canada held Rates at 0.25% in which the future Forecast to keep this Level through the middle of 2010 is a somewhat surprising consideration in terms of looking that “Far into The Future” for a Central Bank Entity.
We are quite accustomed in our present Climate to see Policy Views and Shifts simply going from Meeting to Meeting…although Canada’s emphasis on maintaining its 2% Target Inflation Rate is “In Line” with this type of rhetoric.
Our Thoughts on the concern of the Canadian Dollar strength were emphasized as expected,as The Statement shed light on “The higher Canadian Dollar significantly moderating the pace of overall growth”.
Crude Oil certainly took advantage of this Momentum in its Correlation with The Loonie, while certainly having its own Appreciation lately due to positive Equities Correlations moving forward.
Let’s check in with both Units and observe the Price Appreciation, so give The Captures a Click for reference.
Post-Time is about 30 Minutes after The NYSE Open at 14:00 GMT… where The Dow is bidding up in positive territory a bit over 44 Points.
Here I have the new September Futures Crude Contract, which again, will vary slightly with the Continuous Contract on The NYMEX… where we see an IntraDay High so far of about $66.65 and a new “Transitive Rollover” Area right at the $66.00 Handle.
A deeper Correction… which is probable in my personal View…may simply take us back into the Consolidating Range of $64.20’s to the $66.00 Handle with the Conclusion of Bernanke’s Testimony here.
His emphasis will place Rhetoric on Macro-Economic Growth remaining in Contraction Mode which will give the Dollar and Yen a little boost of “Corrective Steam”, if you will.
The Strength of The Loonie here reaching the 1.0960’s but not being able to sustain the Level as Price moves back to the massive 1.1000 Handle… is precisely the Sentiment the BoC is after.
Corrections may also be due here with the Bernanke Testimony Rhetoric, as well as the Crude and even Gold Corrective Sentiment that looks to be on the way… although a Retracement of this “Wick” surely is possible through to the 1.0930’s Dynamic Support Areas as well.
As always on such an interesting Day, I will have more Updates for you as we move along!
The Curiosity of the potential Dollar and Yen Corrections against the backdrop of strong Equity Earnings will be a unique InterPlay to see concerning general Correlations between all of these Units!
Please join me soon!
