USD/CAD pays no heed to Poloz comments

Upbeat comments from Bank of Canada’s (BOC) Poloz failed to have any impact on the USD/CAD, leaving it largely unchanged on the day above 1.34 handle.

Focus on Oil

The Canadian dollar remains at the mercy of the action in the oil prices. The OPEC failed to reach the consensus on production cuts on Monday as Iraq and Iran continued to express objections.    

At the time of writing, the oil benchmarks - WTI and Brent – were trading slightly weaker, which ensured the USD/CAD stayed above 1.34. The spot dropped from the high of 1.3537 to 1.34 levels on Monday.

USD/CAD Technical Levels

A break above 1.3461 (5-DMA) would expose the psychological hurdle of 1.35, above which the spot may target 1.3537 (Monday’s high). On the lower side, a breakdown of support at 1.34 could yield test of 1.3378 (Nov 22 low), under which the losses could be extended to 1.33 (zero figure).