USD/CAD back below 1.3100 on steady BoC

Pablo Piovano FXStreet

USD/CAD has surrendered previous gains, slipping back below the 1.3100 handle in the wake of the BoC meeting.

USD/CAD retreats from tops post-BoC

The pair has quickly abandoned the area of session highs beyond the 1.3100 handle following a steady stance from the Bank of Canada at today’s meeting, leaving unchanged its overnight rate at 0.50%, as broadly expected.

CAD managed to pick up some buying interest after the BoC expects the economy to expand 2.1% during the current year and 2018, expecting to return to full capacity in mid-2018.

The BoC reiterated that inflation remains below the bank’s target, reflecting material excess in the economy.

Next on tap will be the press conference by Governor S.Poloz, the Fed’s Beige Book, the API’s weekly report on US crude supplies and speeches by Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen.

USD/CAD significant levels

As of writing the pair is gaining 0.15% at 1.3060 facing the initial hurdle at 1.3191 (high Jan.16) followed by 1.3275 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop). On the flip side, a breach of 1.3016 (low Jan.17) would open the door to 1.3002 (low Oct.19) and finally 1.2996 (low Sep.22).

1. R3 1.3333
2. R2 1.3262
3. R1 1.3160
PP 1.3089
1. S1 1.2988
2. S2 1.2917
3. S3 1.2815

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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