22 Jan 2014
USD/CAD capped by 1.0980
FXstreet.com (Edinburgh) - The Canadian dollar is trading almost unchanged against its neighbour on Wednesday, taking the USD/CAD to the 1.0970/65 area ahead of the BoC meeting.
USD/CAD focus on BoC
The pair is extending its correction lower from multi-year highs beyond 1.10 posted yesterday, while investors wait for today’s BoC monetary policy meeting and next week’s FOMC gathering as the main catalysts for the pair. Sebastien Galy, Strategist at Societe Generale, commented, “The odds are low that the BoC will make a dovish statement, but the FX market is positioned for it and to a far lesser extent Canadian Fixed Income. The view seems to be that an overly bearish FX market will be squeezed as it doesn't get what it wants. While there is a risk of a minor consolidation, the money behind the bearish CAD move seems to have large pockets”.
USD/CAD levels to watch
At the moment the pair is losing 0.04% at 1.0965 with the immediate support at 1.0854 (38.2% Fibo retracement).
USD/CAD focus on BoC
The pair is extending its correction lower from multi-year highs beyond 1.10 posted yesterday, while investors wait for today’s BoC monetary policy meeting and next week’s FOMC gathering as the main catalysts for the pair. Sebastien Galy, Strategist at Societe Generale, commented, “The odds are low that the BoC will make a dovish statement, but the FX market is positioned for it and to a far lesser extent Canadian Fixed Income. The view seems to be that an overly bearish FX market will be squeezed as it doesn't get what it wants. While there is a risk of a minor consolidation, the money behind the bearish CAD move seems to have large pockets”.
USD/CAD levels to watch
At the moment the pair is losing 0.04% at 1.0965 with the immediate support at 1.0854 (38.2% Fibo retracement).