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"We expect the BoC to keep its overnight lending rate unchanged at 1 per cent. However, a watering down of the explicit tightening bias would seem to be warranted given core CPI has significantly undershot forecasts made in the previous monetary policy report."
-UBS (based on Financial Times)
Pair's Outlook
For the second day in a row pair is fluctuating sharply—in 50 pip range yesterday and in 75 pip range today. For the time being 0.99 seems to be the area which supports pair, but, taking in to account reading of technical indicators, this should not last long and eventual dip to 0.9833/21 is imminent.
Traders' Sentiment
For the second week bulls are holding overwhelming majority of the positions on the pair and are strengthening their positions further—share of buy orders increased by 8% since yesterday and is at 74% mark. Share of pending buy orders, which is at 59% gauge today, suggest further strengthening of bulls.
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