The common theme that we’ve been seeing from Central Banks recently is that despite their want to ‘normalise’ interest rates, the state of their respective economies simply won’t allow them to do so.

Notably, we’ve seen both the FOMC and RBA forced to take a more neutral stance on interest rate rises and we might very well see the same today from the BOC.

Governor Poloz and his team might well want higher rates, but until inflation truly allows for the increased borrowing costs, then I suspect we’re going to continue to see rates remain unchanged.

While there is no indication that rates were to be adjusted at this meeting, it is worth following any commentary around the forward guidance and what exactly that will have in store for rates. I would expect the BOC to be on hold for the remainder of 2019.

Forex Signal Update

The FX Leaders Team finished with two winners from three trades as we build into the week nicely.

EUR/CHF – Active Signal

As mentioned yesterday, the EUR/CHF signal pulled back above the key support area at 1.1350 and there was no need to panic. The fact that buyers keep pulling this one higher is a positive sign and hopefully, there is some follow through ahead of the ECB this week.

Gold – Active Signal

Gold has taken a big tumble recently and is now back below the big $1300 level. When price holds below a key level it is weak and we are short looking for further downside.

Cryptocurrency Update

Bitcoin has bounced back to the $3,800 region basically from where it came from the prior day. We are really seeing this spiky price action recently, where there is no real trend and just big pushes in one direction followed by a quick retrace.

The fact that we are trading below $4,000 for me is still bearish and until price can break and hold a big level, the bearish bias remains intact.