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USD/CAD clinches 1.4650 ahead of BoC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The Canadian dollar extends its rout on Wednesday, with USD/CAD pushing higher to test fresh cycle peaks in the mid-1.4600s.

    USD/CAD attention to BoC, oil

    The barrel of West Texas Intermediate is dropping to fresh 12-year lows around $38.70, adding further downside pressure to CAD and thus boosting the pair well beyond the 1.4600 mark.

    CAD will remain in the centre of the debate in light of the BoC monetary policy meeting due later in the NA session, with consensus quite divided between a 25 bp rate cut and an ‘on-hold’ stance by the central bank.

    Further pressure is expected to come from the USD-side, as inflation figures will be out in the US docket along with Housing Starts and Building Permits.

    USD/CAD significant levels

    As of writing the pair is gaining 0.59% at 1.4644 facing the initial hurdle at 1.4672 (high Apr.24 2003) and then 1.4946 (high Apr.7 2003). On the other hand, a break below 1.4177 (20-day sma) would aim for 1.3793 (low Dec.24) and finally 1.3790 (3-month uptrend).
    For more information, read our latest forex news.
     

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