BoC Decision Preview: What to Expect of USD/CAD?
The Bank of Canada (BoC) will announce its monetary policy decision at
14:00GMT and it is widely expected to keep rates on hold at 0.50% this
month.
Focus will be in the statement, specially on any comments
on CAD strength and revisions to growth given that recent data has been
upbeat.
However, most of the BoC upbeat tone could be already
priced in while moves in the loonie could also be limited ahead of oil
producers meeting in Doha next weekend, as the Canadian dollar remains
highly correlated to oil prices.
USD/CAD levels to watch
Ahead
of the announcement, USD/CAD was trading at around 1.2800. In terms of
technical levels, next supports are seen at 1.2722 (Jul 15 low), 1.2700
(psychological level) and 1.2662 (Jul 10 2015 low). On the flip side,
resistances could be faced at 1.2919 (Apr 12 high), 1.3015 (Apr 11 high)
and 1.3065 (20-day SMA).
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