USDCAD Movement
For the 24 hours to 23:00 GMT, the USD declined 0.08% against the CAD to close at 1.1023.
Yesterday, the Bank of Canada (BoC) Governor, Stephen Poloz hinted the possibility for the Canadian economy to witness relatively cheap borrowing costs for some more time even after the economy recovers and start operating at full capacity. Furthermore, he opined that “rising global demand for Canadian goods and services, combined with the continued high level of oil prices”, could possibly “stimulate business investment in Canada and shift the economy onto a more sustainable growth track.”
In the Asian session, at GMT0300, the pair is trading at 1.1026, with the USD trading slightly higher from yesterday’s close.
The pair is expected to find support at 1.1012, and a fall through could take it to the next support level of 1.0998. The pair is expected to find its first resistance at 1.1040, and a rise through could take it to the next resistance level of 1.1054.
Traders are expected to keep a tab on global economic news for further cues in the currency pair amid lack of economic releases from Canada.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
