USD/CAD: BoC leaves key interest rate unchanged at 0.50%


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.62% against the CAD and closed at 1.3245.

Yesterday, the Bank of Canada (BoC) left the benchmark interest rate unchanged at 0.50%, as widely expected. Further, the BoC Governor, Stephen Poloz, stated that it is too early to conclude that the economy is on a “sustainable growth path” despite a recent rebound that led it to bump up its 2017 outlook. However, the central bank disclosed that the nation’s economic growth in recent quarters has been stronger than it forecasted in January, but also mentioned that it was “uneven expansion”.

In the Asian session, at GMT0300, the pair is trading at 1.3232, with the USD trading 0.1% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.3194, and a fall through could take it to the next support level of 1.3155. The pair is expected to find its first resistance at 1.3305, and a rise through could take it to the next resistance level of 1.3377.

Moving ahead, Canada’s new housing price index for February, slated to release later today, will be closely watched by investors.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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