USDCAD Movement
For the 24 hours to 23:00 GMT, the USD rose 0.16% against the CAD to close at 0.9944.
The Canadian dollar came under pressure after the Bank of Canada Governor, Mark Carney stated that the need for higher interest rates has become “less imminent”.
Earlier, the Canadian dollar received some support after the Bank of Canada’s quarterly monetary policy report indicated that it expects “gradual” interest rate increases over the next two years and added that the biggest domestic risk to the economy comes from record levels of household debt. The bank forecasted growth of 2.2% in 2012, followed by 2.3% in 2013 and 2.4% in 2014.
Separately, in the US, Federal Reserve released a statement maintaining its view that the economy is growing moderately and voted to continue the stimulus already in place to help the labour market recover.
In the Asian session, at GMT0300, the pair is trading at 0.9932, with the USD trading 0.11% lower from yesterday’s close.
The pair is expected to find support at 0.9895, and a fall through could take it to the next support level of 0.9857. The pair is expected to find its first resistance at 0.9964, and a rise through could take it to the next resistance level of 0.9996.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
