USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.79% against the CAD to close at 1.3029.
The Canadian dollar gained ground after the Bank of Canada (BoC) held its benchmark interest rate steady at 0.5%, as widely expected. The central bank noted that while Canada’s first quarter growth was in line with expectations, the Alberta wildfires which forced the shutdown of several oil production facilities in the nation, is likely to take a toll on the country’s second quarter growth. The BoC further indicated that the devastation will cut 1.25 percentage points of real GDP growth in the second quarter. However, the central bank expressed confidence that the economy would rebound in the third quarter, as oil production resumes and reconstruction begins.
In the Asian session, at GMT0300, the pair is trading at 1.2987, with the USD trading 0.32% lower from yesterday’s close.
The pair is expected to find support at 1.2929, and a fall through could take it to the next support level of 1.287. The pair is expected to find its first resistance at 1.3089, and a rise through could take it to the next resistance level of 1.3190.
Amid no economic releases in Canada today, investor sentiment would be governed by global macroeconomic news.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
