BoC decision preview: What to expect of USD/CAD?

The Bank of Canada will announce its monetary policy decision at 14:00GMT and it is widely expected to keep rates on hold at 0.50% this month.

Focus will be in the statement, specially on any comments on CAD strength and revisions to growth given that recent data has been upbeat.

However, most of the BoC upbeat tone could be already priced in while moves in the loonie could also be limited ahead of oil producers meeting in Doha next weekend, as the Canadian dollar remains highly correlated to oil prices.

USD/CAD levels to watch

Ahead of the announcement, USD/CAD was trading at around 1.2800. In terms of technical levels, next supports are seen at 1.2722 (Jul 15 low), 1.2700 (psychological level) and 1.2662 (Jul 10 2015 low). On the flip side, resistances could be faced at 1.2919 (Apr 12 high), 1.3015 (Apr 11 high) and 1.3065 (20-day SMA).