Daily Forex Technicals |
Written by FXTimes |
Mar 06 13 15:54 GMT
USD/CAD Surges after Dovish BoC Statement
BoC: The Bank of Canada held its benchmark interest rate at 1.00%. In its statement, the bank noted,
“With continued slack in the Canadian economy, the muted outlook for inflation, and the more constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.”
This is a slightly dovish tone as it extends its currently low-interest rate regime.
Breakout: The USD/CAD was held under 1.0292 during the 3/5 session, but broke above that after the BoC statement pushing above 1.03 as well putting pressure on the 2013 high of 1.0341. Above 1.0341, the next resistance pivot is from June 1, at 1.0445.
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