USDCAD rallied against the trend of the broad-based US Dollar fall as the Bank of Canada is widely expected to follow the Federal Reserve’s lead and cut its interest rates by 0.5% to 1.205% from 1.75%. USDCAD closed at 1.3375 from 1.3355 yesterday. The Loonie was the only major currency to fall against the Greenback. Bloomberg News reported that the Bank of Canada is poised to follow the US Fed. It would be the first BOC interest rate move since it raised rates in October 2018. Traders are expecting a cut of at least 0.25%. Canadian 10-year treasury yields plunged 16 basis points to 0.96%. Market positioning in the Loonie (COT report for week ended 25 Feb) saw speculators long of Canadian Dollar bets (+CAD 14,624).
USDCAD has immediate resistance at 1.3400 followed by 1.3440. Immediate support can be found at 1.3360 and 1.3330. Look to sell rallies in a likely range today of 1.3360-1.3410.