USD/CAD (current price: 1.2979)
The pair turned lower in the afternoon as the Canadian Dollar got a boost from the slightly hawkish statement by the BOC that was released following the central bank’s rate decision. The BOC held it benchmark rate at the record low of 0.5%, but downplayed global risks slightly, and investors don’t see further easing from the BOC in the near future. The bullish oil also helped the currency in late trading, as the pair finished near its prior high just above 1.30.
Our assessment: USD/CAD might be ready to test the strong support zone between 1.2820 and 1.2920 following a more than 3-week long rally that took the pair from 1.245 to 1.315.
