15 Jul 2015
USD/CAD rises above 1.29 after BOC cuts rates
FXStreet (Mumbai) - The USD/CAD rose above 1.29 after the Bank of Canada (BOC) announced a 50 basis points rate cut and revised GDP forecasts lower.
USD/CAD: At highest since March 2009 highs
The spot rose to a 1.2922, its highest since March 2009 after the BOC announced a rate cut. Moreover, the market was evenly divided on whether the bank would cut rates this time. The policy statement also carried downward revisions of Q2 2015, full year 2015 and 2016 GDP forecasts.
The pair was already trading at it highest since March 2015 ahead of the BOC decision after Fed chairwoman Yellen reiterated that interest rates are likely to rise in 2015.
USD/CAD Technical Levels
The spot now trades around d 1.29, up 1.3% on the day. The immediate resistance is seen at 1.2922, above which the spot could target the psychological resistance of 1.30. On the other hand, a break below 1.2834 (March 2015 high) could see the spot drop to 1.2780 (July 7 high).
USD/CAD: At highest since March 2009 highs
The spot rose to a 1.2922, its highest since March 2009 after the BOC announced a rate cut. Moreover, the market was evenly divided on whether the bank would cut rates this time. The policy statement also carried downward revisions of Q2 2015, full year 2015 and 2016 GDP forecasts.
The pair was already trading at it highest since March 2015 ahead of the BOC decision after Fed chairwoman Yellen reiterated that interest rates are likely to rise in 2015.
USD/CAD Technical Levels
The spot now trades around d 1.29, up 1.3% on the day. The immediate resistance is seen at 1.2922, above which the spot could target the psychological resistance of 1.30. On the other hand, a break below 1.2834 (March 2015 high) could see the spot drop to 1.2780 (July 7 high).