USD/CAD in highs near 1.2770, BoC eyed

FXStreet (Edinburgh) - The greenback continues to appreciate vs. its Canadian counterpart on Wednesday, pushing USD/CAD to session peaks near 1.2770.

USD/CAD focus on the BoC

After finding support in the 1.2720 level overnight, the pair has sparked a correction higher to the 1.2760 region ahead of the key BoC monetary policy meeting. Recall that market participants has been anticipating a potential rate cut by the central bank today, mainly after the recent disappointing figures in the Canadian GDP.

The pair will thus remain under pressure in light of the BoC decision and the subsequent presser by Governor S.Poloz. In the US, Chair Yellen’s Semi-Annual Testimony at Capitol Hill will be the main highlight this evening.

USD/CAD key levels

At the moment the pair is up 0.28% at 1.2765 with the next hurdle at 1.2809 (high Jul.14) ahead of 1.2835 (2015 high Mar.18) and then 1.2900 (psychological level). On the downside, a break below 1.2722 (low Jul.150 would expose 1.2716 (low Jul.14) and finally 1.2680 (low Jul.13).

NZD/USD meanders near lows below 0.6700

The New Zealand dollar remains heavy against the American dollar in mid-European session, knocking-off NZD/USD to fresh session lows below 0.67 handle. The Kiwi accelerates losses in anticipation of a weaker GDT price index reading ahead of tomorrow’s crucial NZ CPI figures.
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EUR/GBP: Unlikely to break below 0.70 - RBS

Dmytro Bondar, Technical Analyst at RBS explains that 0.70 handle acts as a good support for EUR/GBP and is unlikely to break below it as the weekly piercing pattern remains in place.
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