USD/CAD in 10-week tops near 1.2780 post-BoC
|- CAD depreciated to the 1.2780 area vs. USD
- BoC left rates unchanged, as expected
- BoC revised up GDP forecast for 2017, 2018
The Canadian Dollar accelerated its downside vs. its American neighbour on Wednesday, lifting USD/CAD to the 1.2780 area, levels last seen in mid-August.
USD/CAD higher on BoC
Spot met a wave of buying pressure after the Bank of Canada left unchanged the repo rate at 1.00%, broadly in line with market expectations/
In addition, the BoC revised up its forecasts for GDP, now expecting the economy to expand 3.1% this year and 2.1% in 2018. Further out, the central bank noted slack in the labour market should allow further growth without extra inflation.
The central bank also said that it will remain ‘cautious’ regarding further tightening.
Back to the US, new home sales expanded more than expected by 667K units, or 18.9%, lending some extra support to the buck.
Ahead in the session, Governor S.Poloz will give a press conference (1515GMT).
USD/CAD significant levels
As of writing the pair is up 0.69% at 1.2763 and a breakout of 1.2927 (50% Fibo of the 2017 drop) would aim for 1.3000 (psychological handle) and finally 1.3015 (200-day sma). On the flip side, the immediate support lines up at 1.2611 (low Oct.23) seconded by 1.2563 (10-day sma) and then 1.2448 (low Oct.19).
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