The Bank of Canada left the interest rate unchanged at 1% as expected. The accompanying statement remained somewhat dovish.
USD/CAD is now trading higher at 1.0322 after breaking above 1.03
The BOC’s previous rate decision saw a small change towards the dovish side, and this sent USD/CAD towards parity. Since then, the Canadian dollar has shown weakness. The turning-dovish central bank is not the only reason for the weakness, but certainly contributed.
USD/CAD was trading within the 1.0250 to 1.03 range that characterized its trading since the beginning of the week. 1.0360 is the next resistance line, and further support appears at 1.02.
For more on the Canadian dollar, see the USD/CAD forecast.Get the 5 most predictable currency pairs