When is the BoC monetary policy decision and how could it affect USD/CAD? – by hareshmenghani BOC InterestRate Inflation USDCAD Currencies
ed to leave the overnight interest rate unchanged at 4.5% for the second straight meeting. Most analysts say the central bank will need more time to assess how the economy responds to the eight rate hikes it has delivered over the past year.
From a technical perspective, any subsequent recovery beyond the 1.3500 mark is likely to confront some resistance near the 1.3525-1.3530 region. A convincing breakthrough the latter will trigger a short-covering move and assist the USD/CAD pair to reclaim the 1.3600 round-figure mark. Spot prices could climb further to the next relevant hurdle near the 1.3660-1.3665 horizontal support breakpoint, now turned resistance.
On the flip side, bearish traders need to wait for a sustained break below an upward sloping trend-line extending from the August 2022 swing low. This is closely followed by the very important 200-day Simple Moving , currently around the 1.3400-1.3390 region. Some follow-through selling will confirm a fresh breakdown and make the USD/CAD pair vulnerable to accelerate the fall towards the 1.3315 intermediate support en route to the 1.3300 mark and the 1.3270-1.3265 horizontal zone.
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