USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 3.54% against the CAD and closed at 1.3504.
The Bank of Canada (BoC), in its interest rate decision, kept its key interest rate unchanged at 0.25%, as widely expected. Further, the central bank stated that the negative impact of the pandemic on the global economy has peaked but expressed doubt about how the recovery will unfold. Moreover, the central bank believes that Canada has avoided the worst-case economic scenario predicted in April, upgrading its economic forecast for the second quarter of the year. Meanwhile, the BoC had decided to reduce the frequency of its term repo operations and purchases of bankers’ acceptances.
In the Asian session, at GMT0300, the pair is trading at 1.3512, with the USD trading 0.06% higher against the CAD from yesterday’s close.
The pair is expected to find support at 1.3471, and a fall through could take it to the next support level of 1.3431. The pair is expected to find its first resistance at 1.3562, and a rise through could take it to the next resistance level of 1.3613.
Looking forward, traders would keep a watch on Canada’s international merchandise trade for April, slated to release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
