- BoC´s Poloz dovish comments weaken the CAD.
- CAD/CHF is down 150 pips since the start of the week.
- SNB rate decision on Thursday at 8.30 GMT.
The CAD/CHF is currently trading at around 0.7276 after losing approx 150 pips since the start of the week.
The CAD has seen a fresh wave of selling on Tuesday as the Bank of Canada Governor Poloz made some dovish comments during a speech. He argued that the Canadian economy wouldn´t be able to grow without creating inflation. He additionally said that the BoC is data-dependent, reminding the market that the central bank is waiting to reach its targets before considering doing any hike. Also affecting the CAD are lower oil prices which have been sliding since the start of the year. Canada’s economy is essentially based on the oil industry and lower crude prices affect negatively the Canadian economy.
Moving to the Franc, the Swiss National Bank interest rates´ decision and quarterly bulletin are slated on Thursday at 8.30 GMT. According to analysts, the SNB has no intention to make any changes and rates should stay on hold.
CAD/CHF 4-hour chart
Technically, the CAD/CHF retraced below its 61.8% Fibonacci retracement level from the March 5-9 bullish move. The next key support zone is the 0.7225-0.7250 area, a cyclical low. A clear break below that level would open the doors for a test of the 0.7000 figure. Resistance is seen at the 100-period SMA (chart above) at the 0.7350 level, followed by the 0.7425 level which is the cyclical high and the high of the week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.