- The dollar advances for the third consecutive day in the market.
- The loonie shows weakness on the day of the Bank of Canada decision.
- USD / CAD advance finds resistance at 1.2705 / 10.
The USD / CAD is advancing for the third day in a row and in the last hour managed to move away from the maximum in a week and a half that reached 1.2706. It is trading at 1.2670, up about 25 pips on the day of the Bank of Canada decision.
The USD / CAD rises are trailed by widespread dollar strength. The DXY gains for the third day in a row and is trading at 92.67, up 0.15%. At the same time the loonie is seen among the worst performers in the G10 group.
The pair’s key event for the day will be the meeting of the Bank of Canada (BoC). The decision will be known at 14:00 GMT. No changes are expected in the benchmark interest rate; however the statement and the central bank’s outlook are expected to affect loonie crossovers.
In the US, the job offers report will be published on Wednesday and the Federal Reserve will release the Beige Book. Also speaking will be John William from the New York Fed and Robert Kaplan from the Dallas Fed.
Braking at 1.2700
The advance met resistance around 1.2707, from where it began to retreat. In case of affirming above, the dollar would be positioned for a bullish extension. On the downside, immediate supports can be seen at 1.2655, followed by 1.2625 and 1.2605.
Technical levels
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