Up coming events this week (18 Jan 2009)

I ended last week positively following a smooth descent of GBP/USD. I must remind myself that not all trades will be as easy as this one.

This week, the events will be less focused on USD or EURO. Instead, there will be a string of events lined up for the Canadian Dollar, also known as the Loonie. On Tuesday, Bank Of Canada (BOC) will announce its rate decision. The popular guess is that the interest rate will be lowered by 50 basis points to 1%. Subsequently, the retail figures and the consumer price index for Canada will also be released later in the week. I have a hunch that both oil prices and gold might trade lower this week and I am not looking favorably on commodity dollars at the moment. Given a good opportunity, I might long the USD/CAD at price of 1.24. This pair has twice tested the resistance at 1.3. Given the weakness of the Loonie, we might see the pair test the resistance at 1.3 yet again.

Another commodity dollar, NZD or the Kiwi, may also see some action as a rate decision by the Reserve Bank of New Zealand will also be released following this week.