23 Oct 2013
USD/CAD retreats from highs, BoC eyed
FXstreet.com (Edinburgh) -The greenback is now taking a breather against its fellow neighbour on Wednesday, pushing the USD/CAD off highs near 1.0340 to the current area of 1.0320/15.
USD/CAD focus on BoC
The BoC will hold its monetary policy meeting later, with market expectations broadly tilted towards a neutral-dovish stance, leaving the lending benchmark intact at 1.0%. After dipping to weekly lows around 1.0270 post-NFP and mixed results from Canadian retail sales, the pair managed to gather some steam and regain the critical 1.0300 handle and extend the recovery. Brian Daingerfield, FX Strategist at RBS, assessed, “We anticipate the forecasts will lean on the dovish side and to further highlight the risks to growth from a slower than anticipate export recovery, though we do not expect a change in the benchmark interest rate or key language on the overnight lending rate”
USD/CAD key levels
The pair is now advancing 0.33% at 1.0322 with the next resistance at 1.0385 (high Oct.16) and then 1.0392 (high Oct.15). On the flip side, a break below 1.0275 (low Sep.30) would open the door to 1.0273 (61.8% of 1.0182-1.0420) and finally 1.0261 (MA200d).
USD/CAD focus on BoC
The BoC will hold its monetary policy meeting later, with market expectations broadly tilted towards a neutral-dovish stance, leaving the lending benchmark intact at 1.0%. After dipping to weekly lows around 1.0270 post-NFP and mixed results from Canadian retail sales, the pair managed to gather some steam and regain the critical 1.0300 handle and extend the recovery. Brian Daingerfield, FX Strategist at RBS, assessed, “We anticipate the forecasts will lean on the dovish side and to further highlight the risks to growth from a slower than anticipate export recovery, though we do not expect a change in the benchmark interest rate or key language on the overnight lending rate”
USD/CAD key levels
The pair is now advancing 0.33% at 1.0322 with the next resistance at 1.0385 (high Oct.16) and then 1.0392 (high Oct.15). On the flip side, a break below 1.0275 (low Sep.30) would open the door to 1.0273 (61.8% of 1.0182-1.0420) and finally 1.0261 (MA200d).