FXstreet.com (London) - CAD should be running after a string of bullish macro data, which began last week with jobs creation data thrashing all expectation by five-times the consenus, now coupled with upbeat non-residential permits data.
Dollar strength however has contained CAD, with Dollar shining through as USD/CAD bounced off 1.0422 lows and rallyed as high as 1.0647 earlier today.
Oil, major export of Canada, has shed significantly in recent trading, this also weighed on CAD, the so-called commodity currency.
Oil currently trades at 74.05/10 and USD/CAD is retreating down 6 pips from open, and currently trading at 1.0489.
BoC tommorrow are expected to hold rates firm at 25bps, however market bulls may be hoping for positive language around the reduction/removal of stimulus, and we could see a steady CAD strengthening in the run-up to the decision tomorrow, in a similar phenomenon as we saw today with the Dollar prior to FED speech.
George Davis, key strategist at RBC Cpaital Markets, outlines the key support and resistance levels: (Davis sees) C$1.0593 as an important resistance level for the U.S. dollar, with minor support at C$1.0491 and C$1.0431. [Source: DowJones]