USD/CAD (current price: 1.2725)
The Canadian Dollar was helped by the weak U.S. economic data and rising commodities compared to the USD. BOC Governor Poloz stated yesterday that “While recent economic data have been encouraging on balance, they’ve also been quite variable. The global economy retains the capacity to disappoint further.” The Loonie has now recovered 15% or 2000 pips since hitting a low against most of the majors in January, but further strength might be limited by the more dovish central bank here.
Our assessment: The pair fell below 1.27 for the first time since June, after breaking below the prior low at 1.275. The pair still looks oversold on the short-term making a move up to the upper resistance of the trend channel likely.
