The Canadian is losing ground. Data on the discount rate of the Bank of Canada.

The Canadian dollar fell sharply against the US dollar after the Bank of Canada decided to keep the key discount rate unchanged at 1.00%. Further pressure is exerted by data on labor productivity in Canada, which decreased in the third quarter by -0.6%, exceeding the decline in the previous period at -0.2%.

As for the Bank of Canada cover letter, it noted that the economy is developing as expected, employment and wages growth is improving. It was also noted that higher rates would be required over time, but the Central Bank management would take a cautious approach and be guided by incoming data in assessing the sensitivity to an increase in the discount rate.

Technical analysis: Based on the decision of the Bank of Canada to keep the discount rate unchanged and details of the cover letter, the pair USD/CAD increased by more than 70 points, having updated the session maximum to the level of 1.2748. In case of further price growth and consolidation above the level of 1.2760, one should expect further growth in the area of ​​1.2800-1.2820. The main support levels at 1,2700; 1.2655.

Fig. USD/CAD chart. The current price is $ 1.2755.

Alexander Sivtsov