USD/CAD hits 1-month highs near 1.3700 ahead of BoC

• The dollar without a clear direction on Wednesday.
• The loonie again among the worst performers.
• The decision of the Bank of Canada is coming: an increase of 50 bp is expected.

USD/CAD is rising for the fifth day in a row on Wednesday, reaching as high as 1.3699, a new one-month high. The loonie is among the worst performing currencies before the Bank of Canada decision and a drop in oil prices.

Bank of Canada in focus

later the bank of canada (BoC) will announce its monetary policy decision, which is expected to be an increase of 50 basis points to 4.25%. There are analysts who see a smaller rise possible. Where there is some coincidence that they will continue to rise but not for many more games.

High is expected volatility at loonie junctions around decision time, which will be 15:00 GMT. In the US there will be no high-impact data on Wednesday, highlighting the report on labor costs and non-agricultural productivity.

Financial markets are posting moderate declines, while oil prices Petroleum they fall more than 1%, although they have moved significantly away from the minimums. This is another negative factor for the loonie, which again is the worst among the G10.

USD/CAD unstoppable

In a week the USD/CAD climbed almost 300 pips. The next upward barrier is located between 1.3700 and 1.3710; and then 1.3750 will follow. In the opposite direction, the first support appears at 1.3640 and then a stronger one at 1.3600.

A bullish sign is being the change in the direction of the 20-day moving average, which is now heading higher. It is going through 1.3415. A firm drop below could herald strength ahead for the loonie.

technical levels