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4 Jun 2014
USD/CAD remains above 1.0900, BoC eyed
FXStreet (Edinburgh) - The greenback is appreciating against the Canadian dollar on Wednesday, pushing the USD/CAD to the 1.0925/30 area ahead of the BoC statement.
USD/CAD looks to the BoC
The pair keeps alive the recent rally from the 1.0830 region backed by a better momentum of the US dollar, despite the decreasing yields in the US money markets. In the data front, Canadian trade balance showed a $0.64 billion deficit in April, missing expectations for a $0.20 billion surplus and down from March’s $0.77 billion surplus. Next of note in Canada, the BoC will hold its monetary policy meeting, although there will be no press conference by Governor Poloz. “The BoC is expected to leave its policy rate unchanged at 1.0%. Thus, the main focus will be on the characterization of the outlook portrayed in the statement, as it will have to balance the disappointing outturn for Q1 real GDP with inflation running ahead of what was forecast in the April MPR”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
The pair is now up 0.14% at 1.0924 with the next resistance at 1.0962 (61.8% of 1.1053-1.0814) ahead of 1.1001 (21-w MA) and then 1.1014 (low Apr.25). On the flip side, a breakdown of 1.0814 (low May 8) would target 1.0762 (low Jan.8) en route to 1.0737 (high Dec.20).
USD/CAD looks to the BoC
The pair keeps alive the recent rally from the 1.0830 region backed by a better momentum of the US dollar, despite the decreasing yields in the US money markets. In the data front, Canadian trade balance showed a $0.64 billion deficit in April, missing expectations for a $0.20 billion surplus and down from March’s $0.77 billion surplus. Next of note in Canada, the BoC will hold its monetary policy meeting, although there will be no press conference by Governor Poloz. “The BoC is expected to leave its policy rate unchanged at 1.0%. Thus, the main focus will be on the characterization of the outlook portrayed in the statement, as it will have to balance the disappointing outturn for Q1 real GDP with inflation running ahead of what was forecast in the April MPR”, commented Shaun Osborne, Chief FX Strategist at TD Securities.
USD/CAD levels to consider
The pair is now up 0.14% at 1.0924 with the next resistance at 1.0962 (61.8% of 1.1053-1.0814) ahead of 1.1001 (21-w MA) and then 1.1014 (low Apr.25). On the flip side, a breakdown of 1.0814 (low May 8) would target 1.0762 (low Jan.8) en route to 1.0737 (high Dec.20).