USD/CAD (current price: 1.3072)
The Canadian Dollar bounced lower off the all important 1.32 level following Wednesday’s Federal Reserve meeting as the USD got hit by the dovish statement of the central bank. Yesterday’s positive start by the major commodities also pushed the cross lower, but the Dollar rallied later on, despite the worse than expected U.S. Existing Home Sales data that came in at an annualized 5.33 million units. The CB Leading Index also posted a negative surprise, but the pair still closed back near the 1.31 level.
Our assessment: USD/CAD still closely tracks the movement in the price of oil and precious metals, as the two economies perform similarly, and both the FED and the BOC remains dovish.
