USD/CAD trades a tad below 1.2400 ahead of BOC rate decision

  • USD/CAD makes a sluggish move on Wednesday ahead of a key BOC decision.
  • WTI retreats from higher levels, exerting pressure on the prospects of the loonie.
  • The greenback remains grounded amid upbeat housing and consumer sentiment data.

USD/CAD trades cautiously on Wednesday in the early European trading hours. The pair recovered from the intraday’s low of 1.2350 in the US session and confided in a very narrow trade band. At the time of writing, USD/CAD is trading at 1.2389, down 0.01% for the day.

The US Dollar Index (DXY), trades at 93.90 ahead of the market volatility amidst the major central banks' meetings. Investors anticipate Fed’s tapering while digesting delay in rate hike expectations. US corporate results remained strong despite inflation concerns, which helped the greenback in finding some traction.

The US New Home Sales soared 14% in September whereas the Consumer Confidence jumped to 113.8 in October from 109.8 in September.

The loonie took a back seat following a retreat in WTI prices and ahead of the critical Bank of Canada's (BOC) policy meeting later in the day. Investors anticipate that the BOC will hike the cash rate, as the Canadian economy faces rising inflation and a tightening labor market. Both conditions put an ideal scenario for the central bank to start increasing rates sooner than expected.

In addition to that, WTI eased on Wednesday after the unexpected rise in US stockpiles. The American Petroleum Institute data showed a 2.3 million barrel expansion in crude oil inventories.

As for now, traders are waiting for the US Durable Goods Orders, BOC Interest Rate Decision data to take fresh trading impetus.

USD/CAD additioanal levels


Today last price 1.2389
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.239
Daily SMA20 1.2478
Daily SMA50 1.2592
Daily SMA100 1.252
Daily SMA200 1.2495
Previous Daily High 1.2397
Previous Daily Low 1.235
Previous Weekly High 1.241
Previous Weekly Low 1.2288
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2379
Daily Fibonacci 61.8% 1.2368
Daily Pivot Point S1 1.2361
Daily Pivot Point S2 1.2333
Daily Pivot Point S3 1.2315
Daily Pivot Point R1 1.2408
Daily Pivot Point R2 1.2425
Daily Pivot Point R3 1.2454




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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.


GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.


Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!