USD/CAD: BoC raised interest rates for the first time since 2010


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 1.21% against the CAD and closed at 1.2758.

The Canadian Dollar gained ground, after the Bank of Canada (BoC), at its latest monetary policy meeting, raised its key interest rate for the first time in seven years.

The BoC raised the target for its overnight lending rate to 0.75% from 0.50%. In a statement accompanying the rate decision, the BoC Governor, Stephen Poloz, sounded upbeat on the Canadian economy, stating that recent data has bolstered the bank’s confidence in its growth outlook.

In the Asian session, at GMT0300, the pair is trading at 1.2737, with the USD trading 0.16% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.2632, and a fall through could take it to the next support level of 1.2528. The pair is expected to find its first resistance at 1.289, and a rise through could take it to the next resistance level of 1.3044.

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

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