The USD / CAD has lost more than 150 pips immediately after the release of the Bank of Canada statement, preceded by the announcement to keep its interest rates unchanged at 0.25%. The pair has fallen to a intraday bottom of 1.2490. Just before the release, the dollar had risen against the CAD to six-week highs at 1.2654.
The drop came after the BoC announced that it is adjusting net weekly purchases of government bonds to a target of C $ 3 billion from C $ 4 billion today. The entity also points out that does not foresee an interest rate hike until at least the second half of 2022.
With traders waiting for the post-release bearish move to define, USD / CAD is trading at time of writing above 1.2502, shedding 0.85% daily.
USD / CAD levels
If the support located in the psychological zone of 1.2500 breaks with consistency, the next target would be 1.2471, where is the April 19 low. Below, wait 1.2365, the floor of March 18 and the last three years.
On the upside, the dollar would have to recover the 1.2600 region to try to attack the 1.2700 resistance, the maximum of March 8, before reaching the 1.2739 barrier, the ceiling of March 1 and the last two months
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