FXstreet.com (Barcelona) - USD/CAD has risen around 80 pips the first minutes after the today's BoC cut rate decision. The pair has climbed up from 1.2424 to reach 1.2505, highest since April the 2nd. Currently the pair is back close to 1.2450 level.
Yesterday, USD/CAD won 2.06% from opening price at 1.2157, reaching 1.2141 as minimum and 1.2407 as maximum, to close the day at 1.2407.
BoC cut its interest rate by 25 bp form 0.50% to 0.25%, market's expectations were to hold rate unchanged at 0.50%. Since August 2008, BoC has cut its interest rate from 3.0% to the currently 0.25% .
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.
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