FXstreet.com (London) - Yesterday Bank of Canada held rates firm, despite a bullish market outlook off the back of a string of positive jobs and spending data. In a speech reminiscent of that given by Bernanke in the US earlier in the week, BoC erred on the side of caution, deflating market expectation for more hawkish language.
Coming into the Asian session USD/CAD, seemed to pause for breath after the Canadian dollar was pressured throughout Dec 8 trading as commodities weakened and a move in risk aversion buoyed the Dollar. Trading at 1.0634/35, CAD strengthened 10 pips in early trade.
In the case that CAD strength continues, we see support on the downside for the pair at 1.0619 which tested twice in the previous session. Conversely on the upside 1.0750 followed by 1.100 are key barriers if Dollar strength continues unabated, according to DowJones: 1.0750 or above would signal more gains in the U.S. dollar against its Canadian counterpart, although it will be hard for the U.S. dollar to move as high as the C$1.1000 area.