Bank of Canada left the discount rate unchanged

As expected, the Bank of Canada left the discount rate unchanged at 1.25%, but this decision was not new for the market, against which the reaction was rather restrained. Also, the market is still waiting for the publication of data on oil reserves in the US, the growth of which may put additional pressure on oil quotes and will have a negative impact on the Canadian currency.

Technical analysis: The pair USD/CAD moves between the levels of 0,0 and 23,6 Fibonacci on H1, which correspond to the levels of 1,2999 and 1,2870. Entering the market from these boundaries is potentially dangerous, as they have been tested repeatedly by the price, so it is worth waiting for confirmation signals in the form of reversal candlestick patterns.

Fig. USD/CAD. The current price is $ 1.2958.

Alexander Sivtsov