USD/CAD: BoC raises key interest rates, despite trade tensions


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.55% against the CAD and closed at 1.3211.

Yesterday, the Bank of Canada (BoC), at its July monetary policy meeting, raised its benchmark interest rate to 1.50% from 1.25%, amid rising inflation. Further, the central bank forecasted the economy to expand by 2.0% per year on average between 2018 and 2020.

In the Asian session, at GMT0300, the pair is trading at 1.3208, with the USD trading a tad lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.3109, and a fall through could take it to the next support level of 1.3010. The pair is expected to find its first resistance at 1.3263, and a rise through could take it to the next resistance level of 1.3318.

Moving forward, investors would closely monitor Canada’s new housing price index for May, due to be released later in the day.

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

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