- The pair tumbles to sub-1.2900 levels on steady BoC.
- CAD appreciates to 3-day tops vs. the greenback, around 1.2880.
- The Bank of Canada left the refi rate unchanged at 1.25%, matching estimates.
The Canadian Dollar gained extra traction on Wednesday vs. its American neighbour, dragging USD/CAD to fresh lows in the 1.2890/80 band.
USD/CAD weaker on BoC
The pair accelerated the downside today after the Bank of Canada kept its key rate at 1.25%, in line with prior surveys.
In addition, the central bank said the activity appears to have been stronger than estimated during the first quarter.
The BoC now seem to have dropped the previous cautious stance, hinting at the likeliness of a probable rate hike over the summer.
USD/CAD significant levels
As of writing the index is losing 0.95% at 1.2892 and a breakdown of 1.2866 (21-day sma) would open the door to 1.2833 (55-day sma) and then 1.2727 (low May 11). On the upside, the next hurdle emerges at 1.3049 (high May 29) seconded by 1.3126 (2018 high Mar.19) and then 1.3132 (61.8% Fibo of the 2017 drop).
Share
