USD/CAD surges through 1.3500 mark, highest since early Jan. post-BoC
| • As was widely expected, BoC maintains status quo and leave policy rates unchanged.
• A more dovish tone in the accompanying rate statement weighs heavily on the CAD.
• The USD inches back closer to 22-month tops and remained supportive of the up-move.
The USD/CAD pair caught some aggressive bids and spiked through the key 1.3500 psychological mark, highest since early-Jan. post-BoC announcement.
The Bank of Canada, at its April policy meeting, decided to maintain status-quo and leave benchmark interest rates unchanged at 1.75%. The decision was on expected lines but a more dovish tone in the accompanying rate statement exerted some fresh downward pressure on the Canadian Dollar.
The pair rallied hard and now seems to have stabilized near the top end of its daily trading range as the focus now shirts to updated economic projections, which followed by the post-meeting press conference might further contribute towards driving sentiment surrounding the Canadian Dollar.
Meanwhile, the ongoing US Dollar bullish run, inching back closer to 22-month set in the previous session, coupled with a subdued action around crude oil prices, which tends to influence demand for the commodity-linked currency, remained supportive of the positive tone.
Technical levels to watch
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