The Canadian is under pressure. Details of the speech of the Head of the Bank - Ester Holdings
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The Canadian is under pressure. Details of the speech of the Head of the Bank

The Canadian dollar weakened against the US dollar, amid comments by the head of the Bank of Canada Stephen Poloz, which reduced the likelihood of an increase in the interest rate of the Bank of Canada in the short term. Basically, comments by Poloz were focused on the Canadian labor market. The Head of the Bank of Canada said:

  • Labor power can grow by another half a million people;
  • Canada should work to develop new sources of labor;
  • The growth of labor can lead to increased productivity without provoking inflation;
  • The Canadian market has become “healthier”, although some labor resources persist.

The main pressure on the Canadian currency was made by the comment that the Bank of Canada will remain cautious in the matter of tightening monetary and credit policy, based on incoming economic data.

Technical analysis: The USD / CAD pair maintains an upward trend in the short term. The nearest levels of resistance I consider at the marks of 1.2960, 1.3000. I consider the support levels at the marks of 1.2860, 1.2800.

Key recommendations: For USD / CAD pair it is worth to consider both purchases and sales from the above-mentioned support and resistance levels, with the potential of movement from 60 to 80 points. The signal for entering the transaction will be the formation of a candlestick on the chart of H1. More information about these signals you can learn from the series of articles “Analysis of Japanese candles – the main candle models.”

USD / CAD Graph. Current price $ 1.2917.

 

Alexander Sivtsov

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