The USD/CAD pair slipped to 1.34837, overnight and two-month lows before settling to finish in New York at 1.3515. This morning USD/CAD is trading at 1.3505. A build in risk appetite, higher Oil prices and a generally weaker US Dollar boosted the Canadian Loonie. The Bank of Canada meets today on interest rates and is not expected to increase stimulus, leaving its current policy and interest rate unchanged. The meeting will be the farewell of Stephen Poloz who will be succeeded by his former deputy, Tiff Macklem. Both are dovish leaning. Economic data has deteriorated significantly between the last two policy meetings. Any mention of negative rates will see USD/CAD soar.
Any souring or risk sentiment will weigh on the Loonie, also lifting USD/CAD higher.
USD/CAD has immediate support at 1.3480 (overnight low 1.34837) followed by 1.3430. Immediate resistance can be found at 1.3520 followed by 1.3570. Look to buy dips in a likely range today of 1.3470-1.3620.
