3 Dec 2014
USD/CAD back to 1.1370
FXStreet (Edinburgh) - The Canadian dollar is recovering part of the losses vs. the greenback at the end of the US session on Wednesday, with USD/CAD back to the 1.1365/70 band.
USD/CAD weaker after BoC
The CAD gained some ground after the BoC left its monetary policy intact in today’s meeting, with the refi rate at 1.0% as broadly expected. The central bank highlighted the good pace of the Canadian economic recovery despite a backdrop of declining crude oil prices and high levels of household debt, adding that these pressures remain temporary. The BoC also stressed the benefits for the domestic export sector that carries the current recovery in the US economy, sounding less dovish than previously estimated. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “The only hang up at the moment is the heavy price action that followed this week’s test higher. We may see the low 1.13s retested near-term but expect firm support on dips”.
USD/CAD significant levels
At the moment the pair is retreating 0.27% at 1.1363 and a breach of 1.1325 (Tenkan Sen) would open the door to 1.1319 (low Dec.2) and finally 1.1314 (low Dec.1). On the upside, the initial hurdle aligns at 1.1412 (high Dec.3) followed by 1.1425 (high Dec.2) and then 1.1459 (high Dec.1).
USD/CAD weaker after BoC
The CAD gained some ground after the BoC left its monetary policy intact in today’s meeting, with the refi rate at 1.0% as broadly expected. The central bank highlighted the good pace of the Canadian economic recovery despite a backdrop of declining crude oil prices and high levels of household debt, adding that these pressures remain temporary. The BoC also stressed the benefits for the domestic export sector that carries the current recovery in the US economy, sounding less dovish than previously estimated. In the view of Shaun Osborne, Chief FX Strategist at TD Securities, “The only hang up at the moment is the heavy price action that followed this week’s test higher. We may see the low 1.13s retested near-term but expect firm support on dips”.
USD/CAD significant levels
At the moment the pair is retreating 0.27% at 1.1363 and a breach of 1.1325 (Tenkan Sen) would open the door to 1.1319 (low Dec.2) and finally 1.1314 (low Dec.1). On the upside, the initial hurdle aligns at 1.1412 (high Dec.3) followed by 1.1425 (high Dec.2) and then 1.1459 (high Dec.1).