ForeXistenZ › Central banks › BOC
Bank of Canada (BOC)
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Steers the Canadian dollar — the loonie, closely linked to the price of oil.
How the BOC moves the CAD
A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a BOC decision are among the most volatile of the month for the CAD. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.
Frequently asked
What does the Bank of Canada do?
Steers the Canadian dollar — the loonie, closely linked to the price of oil.
Where is the Bank of Canada?
The Bank of Canada (BOC) is in Ottawa, Canada.
Why do forex traders watch the BOC?
Interest rates are the price of a currency. When the BOC raises or cuts rates — or only hints at it — money moves into or out of the CAD, and USD/CAD reacts within seconds.
Where are the BOC’s decisions published?
Official decisions, statements and the meeting calendar are published on https://www.bankofcanada.ca.
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Other central banks
FEDFederal Reserve System
Washington, D.C., United States — Sets US interest rates. Every Fed decision moves the dollar — the currency on one side of almost nine in ten FX trades.
BANXICOBanco de México
Mexico City, Mexico — Sets rates for the peso, the most traded currency of Latin America.
BCBBanco Central do Brasil
Brasília, Brazil — Guards the real and runs Pix, one of the world’s fastest-growing instant payment systems.
BOEBank of England
London, United Kingdom — The Old Lady of Threadneedle Street — sets UK rates and guards one of the largest gold vaults on Earth.
SNBSwiss National Bank
Zurich / Bern, Switzerland — Guardian of the Swiss franc, the safe haven the market runs to when fear rises.
ECBEuropean Central Bank
Frankfurt, Euro area — Runs monetary policy for the twenty countries of the euro, the world’s second reserve currency.