FXstreet. (Barcelona) - The USD/CAD rallied after the Bank of Canada released its decision to cut interest rates by 50 basis points, and the took back the 100 pips lost ahead of the Bank's decision, reaching 1.2950 where it seems to have stalled unable to break intra day high.
The USD/CAD has reached levels close to year high as, the signal given by the Boc that further monetary stimulus could be provided if necessary has proved negative for the CAD.
Nevertheless, the UBS bank affirms that the Canadian Dollar is about to appreciate iduring the next 12 months: The signal that the central bank, if required, would provide additional monetary stimulus through quantitative easing was negative for the CAD. We keep our neutral view on USDCAD and see a stronger CAD only in 12m.