The Canadian loses ground

As expected, the Bank of Canada kept the discount rate at 1.00%. At the same time, the Central Bank noted that the country’s exports will accelerate more slowly, and the inflation rate will reach 2% not earlier than the second half of next year or later. Based on this statement, one should expect that in the next 7-8 months the central bank of Canada will not consider another tightening of monetary policy. This put pressure on the Canadian currency.

For more information see The market focus 

Technical Analysis: Because of this decline in the Canadian currency against the US dollar, the pair USD/CAD broke through the level of resistance of the rising channel at H1. It indicates the strengthening of the uptrend in the short term.

Fig. Current price USD/CAD – 1.2671

Alexander Sivtsov