USD/CAD back into 1.2850 following BoC Poloz comments
- Loonie manages to walk back some USD gains, but a middling Poloz could be hampering momentum.
- Treasury yields are the star of the show this week, sending the Greenback broadly higher.
Ther USD/CAD is holding near 1.2840 heading into Thursday's action, after pushing into three-week highs on Wednesday around the 1.2900 handle.
The US Dollar has been rallying lately, getting pushed higher as US 10-year Treasury bond yields climb over the 3% mark, but the CAD was able to push back in Wednesday's action and bring the pair back down. The Loonie is now twisting somewhat in the overnight session following a lengthy showing from the Bank of Canada's Governor Poloz, who among other things highlighted that low oil prices are putting a damper on energy growth within Canada, and that NAFTA uncertainty continues to plague growth prospects as well.
The CAD is now data-free fort the rest of the week, and the USD and oil will continue to be the main drivers of the pair ahead of the US GDP figures dropping on Friday.
USD/CAD Levels to watch
As pointed out by the RoboForex Team, "the [USD/CAD] is moving above Ichimoku Cloud, which means that it may continue growing. The markets could indicate that the price may test the upside border of the cloud at 1.2820 and then continue moving upwards to reach 1.2970. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further decline may be canceled if the price breaks the downside border of the cloud and fixes below 1.2720. In this case, the pair may continue falling towards 1.2640.”
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
