USD/CAD in 2-day tops post-BoC, near 1.2640

CAD sells off to the area beyond the 1.2600 mark vs. the buck.
BoC leaves rates on hold at 1.25%, in line with expectations.
BoC expects inflation to pick up pace during this year.

Pablo Piovano FXStreet

A wave of selling pressure is now hitting the Canadian Dollar, lifting USD/CAD to the area of fresh 2-day tops beyond 1.2600 the figure following the steady stance from the BoC.

USD/CAD higher on BoC

CAD gained further downside impetus after the BoC left the benchmark rate unchanged at 1.25% at today’s meeting, matching the broad consensus among traders.

In addition, the central bank now expects inflation to be ‘modestly higher in 2018’, while it will continue to assess the labour market with special focus on the remaining slack.

Despite higher rates appear warranted over time, the BoC noted that some monetary accommodation will be needed in order to maintain inflation on target.

Later in the NA session, CAD is seen under scrutiny in light of the press conference by Governor S.Poloz and Deputy Governor C.Wilkins.

USD/CAD significant levels

As of writing the index is gaining 0.57% at 1.2624 and a surpass of 1.2635 (high Apr.18) would aim for 1.2710 (high Apr.10) and finally 1.2722 (38.2% Fibo of the 2017 drop). On the flip side, the initial support comes in at 1.2525 (low Apr.17) followed by 1.2469 (23.6% Fibo of the 2017 drop) and then 1.2447 (low Feb.16).

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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