- CAD extends losses following Bank of Canada policy decision.
- BoC Post meeting press conference underway.
The USD/CAD pair rose further and printed a fresh weekly high at 1.2657 during the post-meeting press conference at the Bank of Canada. The Central bank, as was widely expected, kept is its key monetary policy interest rate at 1.25%.
Following the decision, the Loonie lost ground across the board, then pulled back, but after the beginning of the press conference, weakened further, hitting fresh lows.
As of writing, Governor Stephen Poloz and Deputy Governor Carolyn Wilkins are still holding a press conference and USD/CAD trades near the highs at 1.2630/40.
Poloz between limited optimism and caution
BoC Governor said that the economy made considerable progress over the last 12 months but warned that is not yet able to remain at full capacity on its own. Also note that the economic moderation continued early 2018 in a way more pronounced than expected.
Regarding rates, Poloz noted that there are forces like trade uncertainty and geopolitical risks that need to be dissipated for the interest rate to reach the neutral range.
He reaffirmed that the path of monetary policy is intensely data depended. He signaled that the Governing Council debated about the appropriate pace of interest rate hikes.
The words from the BoC failed to offer support to the Loonie that extended losses across the board. USD/CAD also gained more support from a partial recovery of the US dollar.
Technical levels
To the upside, resistance levels might be located at 1.2675, 1.2715 and 1.2730 (Apr 6 low). On the flip side, supports now could be seen at 1.2595/1.2600 (previous daily high), 1.2545 (Apr 18 low) and 1.2525 (Apr 17 low).
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bears in the market, chipping away into key support
AUD/USD bulls look to the 38.2% Fibonacci of the prior bearish leg and then 0.6725 which guards a continuation higher. Bears are in the market and eye a move deeper into support.
EUR/USD bears flirt with golden Fibonacci ratio, focus on 1.0765-60
EUR/USD seesaws around 1.0830-20 as the key Fibonacci retracement level probes bears during early Friday, following the Euro pair’s U-turn from a seven-week high the previous day. The Euro marked the first daily loss in six on Thursday as it failed to cross the two-month-old horizontal resistance area surrounding 1.0930-35.
Gold prods key hurdle as yields and US Dollar stabilize
Gold price struggles to extend two-day rebound as ascending resistance line from August 2022 prods bulls. Fresh concerns about banking crisis, Federal Reserve moves allow United States Treasury bond yields, US Dollar to lick their wounds.
Arbitrum airdrop flops, but ARB still makes it to a commendable all-time high. Here’s what happened
The token launch for Arbitrum was quite bumpy, to say the least after users could not claim their airdrop tokens for the first one hour post-launch. The turn of events was very disappointing, given that users had been waiting for a week for the highly-advertised ARB airdrop.
Is the banking crisis over, or is the worst yet to come?
When the Fed started signalling higher for longer last summer, everybody assumed that the first thing to break would be consumption, followed by big job losses.