USD/CAD plummets to lows on steady BoC

Pablo Piovano FXStreet

USD/CAD has quickly faded the initial spike to the 1.3540 region and tumbled to fresh lows in the vicinity of the 1.3470 area following the BoC decision.

USD/CAD offered post-BoC

Spot met extra selling pressure after the Bank of Canada left unchanged its repo rate at 0.50%, universally in line with market expectations.

The central bank stressed that uncertainties still prevail and keep weighing on the outlook for the domestic economy.

On the US side, Existing Home Sales dropped to 5.57 million units in April, or 2.3%, coming in short of forecasts.

Looking ahead, the FOMC minutes are expected to come in on the hawkish side, which could help spot trim part of the daily losses via a more demanded buck.

USD/CAD significant levels

As of writing the pair is losing 0.34% at 1.3466 and a break below 1.3453 (low May 23) followed by 1.3440 (61.8% Fibo of the April-May rally) and finally 1.3408 (low Apr.24). On the flip side, the next up barrier is located at 1.3542 (high May 22) seconded by 1.3575 (38.2% Fibo of the April-May rally) and then 1.3641 (20-day sma).

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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