USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.56% against the CAD and closed at 1.2625.
Yesterday, the Bank of Canada (BoC), at its April monetary policy meeting, decided to keep the key interest rate unchanged at 1.25%, citing an economic slowdown early this year. Further, the central bank reiterated its view that further interest-rate hikes will be warranted over time as officials expect the economy to rebound but added that it will follow a cautious approach when weighing future decisions. Moreover, the central bank downgraded its 2018 economic growth forecast to 2.0% from 2.2%, due to the weaker than expected start to the year. Nevertheless, growth in 2019 is estimated to be 2.1%, before easing to 1.8% in 2020.
In the Asian session, at GMT0300, the pair is trading at 1.2631, with the USD trading 0.05% higher against the CAD from yesterday’s close.
The pair is expected to find support at 1.2567, and a fall through could take it to the next support level of 1.2502. The pair is expected to find its first resistance at 1.2678, and a rise through could take it to the next resistance level of 1.2724.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
