Thread: Type of interest of the DAC

Absolutely. Sometimes the statement has more impact than the number. Language is key.

Look at the words ticktening, pause, inflation persisting. That moves the pair more than 0.25%.

So, if the BoC is more dovish, should the USD/CAD go up even if they keep 4%?

Exactly. If they sound pessimistic about the economy, the CAD weakens and USD/CAD rises.

The key is the context, not just the number. Many lose money by looking at just one figure.

Okay, I'm gonna look at the last BoC statement to see if I can anticipate the tone.

And it compares to the previous one. Sometimes a single word changes the whole interpretation.

I'd tell you to wait for at least the first 15-minute candle before you do anything crazy.

I'm putting together an entry rule based on the closing of the first 15M candle after the news.

That gives you time to evaluate direction and avoid high volatility traps.