FXstreet.com (Barcelona) - After reaching the 1.2505 level, highest since April the 2nd, a few minutes afterward the BoC cut rate decision, USD/CAD has fallen around 150 pips to test the 1.2350 level.
Currently, the pair is trading around 1.2365/75 after falling 0.30% so far today from opening price at 1.2408.
According to Valeria Bednarik, Market was surprised by BoC: Canada surprise markets with a 0.25% rate cut, sending the benchmark to a fresh record low of 0.25% and decline sharply against dollar, breaking previous range to the upside. Besides, statement has been more dovish than expected, as the BOC expects the GDP to shrink 3% this year, more than twice previous forecast, putting quantitative easing on the table for one more country.Daily charts are quickly gaining upside momentum, with a strong resistance, above recent maximum of 1.2510 at 1.2570. 1.2410/40 should hold the downside to keep the bias intact.
For more information, read our latest forex news.