USD/CAD (current price: 1.2947)
The Canadian Dollar was in the spotlight yesterday with the announcement of the Bank of Canada’s rate decision. The central bank left its benchmark rate unchanged at the record low level of 0.5% yet again. Some analysts were expecting a rate cut in the aftermath of the Brexit vote, but the bank only changed its economic outlook citing the referendum. The announcement caused a spike below the crucial 1.30 level, but the pair finished only slightly lower, as the drop of oil weighed on the Canadian Dollar.
Our assessment: USD/CAD is still stuck in a broad trading range between the support level at 1.2650 and the strong resistance at 1.32. The future path of oil might have a major influence on the next significant move.
