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15 Apr 2015
USD/CAD in multi-week lows
FXStreet (Edinburgh) - The Canadian dollar is now quickly picking up pace vs. its American peer, dragging USD/CAD to levels last seen in early February near 1.2350.
USD/CAD weaker on BoC
The Canadian dollar is deriving its support from the press conference by BoC’s Stephen Poloz, who is striking a more hawkish than expected tone after the central bank left intact its benchmark rate at 0.75%. In its statement, the BoC expects the GDP to pick up pace in the second half of the year and sees the economy expanding 2.5% in 2016 vs. 2.4% previous. It has also revised higher its forecasts for headline inflation backed by a weaker CAD.
Governor Poloz signaled that Q1 data will remain ‘poor’ and that the inflation would be around zero without a lower Canadian dollar. He also sees positive signs from the manufacturing sector and a good performance of the exports sector.
USD/CAD levels to watch
At the moment the pair is retreating 0.77% at 1.2387 with the next support at 1.2353 (low Feb3) ahead of 1.2350 (38.2% of 1.1565-1.2835) and then 1.2286 (23.6% of 1.0620-1.2800). On the flip side, a break above 1.2388 (low Apr.8) would expose 1.2407 (low Mar.4) and then 1.2410 (low Mar.26).
USD/CAD weaker on BoC
The Canadian dollar is deriving its support from the press conference by BoC’s Stephen Poloz, who is striking a more hawkish than expected tone after the central bank left intact its benchmark rate at 0.75%. In its statement, the BoC expects the GDP to pick up pace in the second half of the year and sees the economy expanding 2.5% in 2016 vs. 2.4% previous. It has also revised higher its forecasts for headline inflation backed by a weaker CAD.
Governor Poloz signaled that Q1 data will remain ‘poor’ and that the inflation would be around zero without a lower Canadian dollar. He also sees positive signs from the manufacturing sector and a good performance of the exports sector.
USD/CAD levels to watch
At the moment the pair is retreating 0.77% at 1.2387 with the next support at 1.2353 (low Feb3) ahead of 1.2350 (38.2% of 1.1565-1.2835) and then 1.2286 (23.6% of 1.0620-1.2800). On the flip side, a break above 1.2388 (low Apr.8) would expose 1.2407 (low Mar.4) and then 1.2410 (low Mar.26).