3 Dec 2014
USD/CAD spikes to 1.1420, BoC eyed
FXStreet (Edinburgh) - The Canadian dollar is quickly giving away the recent gains vs. the greenback, with USD/CAD now posting session highs in the 1.1420 neighbourhood.
USD/CAD focus on BoC, Poloz
The main event in the Canadian docket will be today’s BoC monetary policy meeting and the subsequent speech by Governor S.Poloz. Despite consensus expects the central bank to keep the refi rate unchanged at 1.0%, Poloz’s speech will take centre stage in light of the recent higher inflation figures in Canada, falling crude oil prices and asymmetric global growth trends. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “We hold a USDCAD 2014 year-end 1.15 target and a 2015 year-end target of 1.17; expecting CAD to underperform the USD; but outperform currencies like EUR and JPY”.
USD/CAD significant levels
At the moment the pair is advancing 0.17% at 1.1414 with the next hurdle at 1.1425 (high Dec.2) and then 1.1459 (high Dec.1). On the downside, a breach of 1.1325 (Tenkan Sen) would open the door to 1.1319 (low Dec.2) and finally 1.1314 (low Dec.1).
USD/CAD focus on BoC, Poloz
The main event in the Canadian docket will be today’s BoC monetary policy meeting and the subsequent speech by Governor S.Poloz. Despite consensus expects the central bank to keep the refi rate unchanged at 1.0%, Poloz’s speech will take centre stage in light of the recent higher inflation figures in Canada, falling crude oil prices and asymmetric global growth trends. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, “We hold a USDCAD 2014 year-end 1.15 target and a 2015 year-end target of 1.17; expecting CAD to underperform the USD; but outperform currencies like EUR and JPY”.
USD/CAD significant levels
At the moment the pair is advancing 0.17% at 1.1414 with the next hurdle at 1.1425 (high Dec.2) and then 1.1459 (high Dec.1). On the downside, a breach of 1.1325 (Tenkan Sen) would open the door to 1.1319 (low Dec.2) and finally 1.1314 (low Dec.1).