FXstreet.com (Barcelona) - After rising 2.6% yesterday session, USD/CAD is trading in a small range between 1.2360 and 1.2410 today's session. Currently, the pair is falling around 0.23% so far today from the opening price at 1.2404.
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.
Market is focusing in today's Bank of Canada interest rate decision, expectations are that BoC will leave rate unchanged in 0.50%. It could be the first time BoC don't touch its interest rate since August 10. Last 8 months, BoC cut from 3.0% to 0.5% in March the rate.
According to Valeria Bednarik, FXstreet.com collaborator, USD/CAD is consolidating its yesterday high levels: USD/CAD is consolidating close to yesterday's high of 1.2406; with oil loosing 9% in a day, and greenback favored by general pessimism in markets, not strange to see the pair in this zone. Today, we have BOC rate decision, expected to leave rates unchanged at 0.50%, yet CAD's reaction may probably hinge more upon the policy bias contained within the Bank's press release. The pair lost in the first day of the week, all the ground gained past week, still fighting around actual zone, with the base of the long term channel broken past April 10th. Weekly close above 1.2400 will mean the figure should be discarded, while close under 1.2350 zone, could be well understood as a pullback, and a probable downside continuation sign.
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