- The Bank of Canada maintained interest rates and recalibrated the purchasing program.
- The loonie weakened after the decision, but moderately with limited impact.
The USD / CAD jumped to 1.3305 after the release of the Bank of Canada statement, reaching a new high in three weeks. But it did not stabilize above 1.3300 and fell back to 1.3290, where it is operating, validating an important daily gain, supported by a rally of the dollar throughout the market.
The Bank of Canada (BoC) kept interest rates unchanged at 0.25% as expected and announced a recalibration of the purchasing program and a gradual reduction in the purchasing program, without generating major surprises. Initially the loonie fell back on the market, but then rebounded from the decision.
The USD / CAD made new highs and remains in the zone of the highs, mainly due to the strength of the dollar. The greenback is rising in a climate of risk aversion in global markets due to fears about the economic impact of the increase in coronavirus infections in Europe. Against the other commodity-linked currencies, the loonie is on the rise and held gains after the BoC.
From a technical point of view, USD / CAD is about to show overbought levels in the very short term, but there are no signs of a downward correction at the moment. A confirmation above 1.3300 would point to more raises, while in the opposite direction, now 1.3250 is the first support of consideration.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
