Market Opportunities : Week 11-04-2022 - 15-04-2022

USDCAD: Bank of Canada (BOC) interest rate decision due April 13 is an important event for forex markets. BOC raised interest rate at its last meeting and traders are anxious to see if policy makers’ determination to continue raising interest rates has hardened in light of inflation levels exceeding central bank’s target level more than twice. investors are betting BOC will hike its key interest rate a half-percentage-point after a quarter-percentage-point increase at last meeting in March. A decision to increase the pace of rate hikes will be bearish for USDCAD.

EURUSD: European Central Bank interest rate decision is the key economic event in the April 11-15 week. European Central Bank will hold its conference on April 14. Investors will be watching closely to see how the bank changes its guidance on rate hikes after the Federal Reserve, Bank of England and Bank of Canada started their rate hike cycles to combat persistent high inflations. In case the ECB signals a rate hike any time later this year - the EURUSD will get a bullish boost.