Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

USD/CAD Steady As BoC Holds Course On Rates

Published 2020-07-15, 11:47 a/m
Updated 2023-07-09, 06:31 a/m

After drifting in the early part of the week, USD/CAD has posted slight losses on Wednesday. Currently, the pair is trading quietly at 1.3576, down 0.28% on the day. On the fundamental front, the Bank of Canada maintained its Overnight Rate at 0.25%, where it has been pegged since March. Canada’s manufacturing sales rebounded after a disastrous April read of -28.5, with a 10.7% gain in May. There was good news south of the border as well. The U.S. Empire State Manufacturing Index bounced back after four straight declines, with a strong reading of 17.2. Industrial Production gained 5.4%, outpacing the forecast of 4.5%. On Thursday, U.S. retail sales are expected to post a gain of 5.0%.

Bank of Canada Maintains Benchmark Rate

There were no surprises from the Bank of Canada, which kept interest rates at ultra-low levels. The rate remained at 0.25%, where it has been pegged since March, when the bank slashed rates by a staggering 1.0%, in order to stabilize the economy and financial markets. The bank did sound a somber note, stating that the global and Canadian economic outlooks remain uncertain. The Canadian dollar has reeled off three straight months of gains, but still hasn’t completely recovered from an abysmal March, when USD/CAD jumped 4.9%.

USD/CAD Technical

  • In the Asian session, USD/CAD lost ground and this trend continued in European trade. The pair has reversed directions in North American trade, posting small gains

    • 1.3643 is the next resistance line, followed by 1.3668
    • 1.3572 is under pressure in support and could break in the North American session. Next, there is support at 1.3547
    • The 10-day MA is just below the pair, at 1.3574. If USD/CAD breaks below this line, it is a bearish signal for the pair

    This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.