USD / CAD seems to close little changed around 1.2100 as the BoC maintains the status quo

• USD / CAD continues to fluctuate in a tight weekly range.
• The Bank of Canada did not change its monetary policy configuration.
• The US Dollar Index remains above 90.00 ahead of the CPI data.

After falling to a daily low of 1.2056 earlier in the day, the pair USD / CAD It erased most of its losses and was last seen trading virtually unchanged on the day at 1.2108.

BoC’s policy announcements don’t provoke a reaction
Earlier in the day, USD weakness amid falling US Treasury yields forced USD / CAD to push lower. In addition, a barrel of West Texas Intermediate (WTI) reached its highest level since October 2018 at $ 70.60 and helped the commodity-sensitive Canadian dollar outperform its rivals.

Meanwhile, the Bank of Canada (BoC) announced Wednesday that it left its policy rate unchanged at 0.25% after its June meeting. In addition, the BoC decided to keep the C $ 3 billion target in weekly net asset purchases of Canadian government bonds unchanged.

In its policy statement, the BoC reiterated that it will keep the policy rate at the effective lower limit until economic slack is absorbed and the 2% inflation target is sustainably achieved. “In current projections, this does not happen until the second half of 2022,” the publication reads.

On the other hand, the US dollar index (DXY), which fell to a daily low of 89.83, began to rise as US Treasury yields managed to move away from daily lows. Currently, the DXY is flat on the day at 90.14, which does not allow USD / CAD to turn south.

On Thursday, data from the US Consumer Price Index (CPI) will be revised to give new momentum.

Technical levels