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6 Mar 2013
Forex: USD/CAD testing Tuesday’s highs
The Canadian dollar is resuming its depreciation against the greenback on Wednesday, pushing the cross to the vicinity of the key resistance at 1.0300 ahead of the BoC monetary policy meeting. Market participants expect the central bank commanded by M.Carney to leave the repo rate intact at 1.0%.
“Arguably the softer tone in Canadian house prices and the fiscal measure designed to slow the growth in household debt have provided the BoC with a little further room to act. However, it is likely that any dovish contained within today’s BoC policy statement is likely to be carefully measured”, assessed Jane Foley, Chief Currency Strategist at Rabobank.
At the moment, the cross is advancing 0.22% at 1.0292 with the next resistance at 1.0310 (high Mar.4) ahead of 1.0343 (2013 high Mar.1) and then 1.0363 (high Jun.28 2012).
On the downside, a break below 1.0255 (low Mar.6) would bring 1.0217 (low Feb.28) and then 1.0206 (low Feb.25).
“Arguably the softer tone in Canadian house prices and the fiscal measure designed to slow the growth in household debt have provided the BoC with a little further room to act. However, it is likely that any dovish contained within today’s BoC policy statement is likely to be carefully measured”, assessed Jane Foley, Chief Currency Strategist at Rabobank.
At the moment, the cross is advancing 0.22% at 1.0292 with the next resistance at 1.0310 (high Mar.4) ahead of 1.0343 (2013 high Mar.1) and then 1.0363 (high Jun.28 2012).
On the downside, a break below 1.0255 (low Mar.6) would bring 1.0217 (low Feb.28) and then 1.0206 (low Feb.25).