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USD/CAD tests 1.0950 after BoC decision and US data

FXStreet (San Francisco) - The US dollar is trading higher against its Canadian counterpart following the BoC decision to maintain unchanged its interest rate at 1.0% plus the better than expected ISM non-manufacturing data in US.

After rising 35 pips from 1.0915, the USD/CAD is now testing highs since May 6 at 1.0950. Currently, USD/CAD is trading at 1.0939, up 0.31% on the day, having posted a daily high at 1.0954 and low at 1.0904.

USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.

USD/CAD levels

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).

Canada BoC Interest Rate Decision in line with forecasts (1%)

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BoC keeps interest rate steady at 1% in May

As widely expected, the Bank of Canada decided to maintain its target for the overnight rate unchanged at 1% at its May monetary policy meeting. The Bank Rate remained correspondingly at 1.25% and the deposit rate at 0.75%.
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