22 Jan 2014
USD/CAD extends gains after Poloz speech
FXstreet.com (Córdoba) - The USD/CAD added to gains and reached a fresh 4 ½-year high following the Bank of Canada's Poloz press conference.
After the BoC decided to keep policy unchanged, Governor Poloz spoke at a press conference and said the bank is more concerned about low inflation and that economic data over past 3-months has been negative. He seemed very comfortable with a weak Canadian dollar, which would provide an "extra kick" for the economy. The USD/CAD rose further and reached a high of 1.10745, last seen Sep 2009.
USD/CAD levels to watch
At time of writing, the USD/CAD is trading at the 1.1070 area, recording an impressive 0.9% gain as dovish rhetoric hurt the loonie. In terms of technical levels, the USD/CAD could find immediate resistances at 1.1100 (Sep 2 2009 high) and 1.1123 (Aug 17 2009 high). On the flip side, supports are seen at 1.0952 (Jan 22 low) and 1.0935 (10-day SMA).
After the BoC decided to keep policy unchanged, Governor Poloz spoke at a press conference and said the bank is more concerned about low inflation and that economic data over past 3-months has been negative. He seemed very comfortable with a weak Canadian dollar, which would provide an "extra kick" for the economy. The USD/CAD rose further and reached a high of 1.10745, last seen Sep 2009.
USD/CAD levels to watch
At time of writing, the USD/CAD is trading at the 1.1070 area, recording an impressive 0.9% gain as dovish rhetoric hurt the loonie. In terms of technical levels, the USD/CAD could find immediate resistances at 1.1100 (Sep 2 2009 high) and 1.1123 (Aug 17 2009 high). On the flip side, supports are seen at 1.0952 (Jan 22 low) and 1.0935 (10-day SMA).