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17 Apr 2013
Forex: USD/CAD rises to 1.0266/70 after BoC
FXstreet.com (Barcelona) - The USD/CAD had moved higher all day ahead of the BoC interest rate decision and rate statement Wednesday, which was by far the marquee event of the afternoon thus far during European trading. Following the events, the cross has settled at 1.0266/70, rising +0.58% to session highs.
Mataf.net analysts calculate the USD/CAD rally will be stymied by means of resistance at 1.0281 and 1.0306. Alternatively, supports are seen at 1.0198, ahead of 1.0173 and 1.0144.
In Canada, the highly anticipated BoC interest rate decision was held at 1.0%, matching consensus estimates. The Bank of Canada has highlighted in its statements that due to 'persistent' supply bottlenecks, Canadian heavy crude already trades at a discount to global prices. A secular change in the commodity sector would sharply reduce export earnings and more importantly, investment expectations domestically.
Mataf.net analysts calculate the USD/CAD rally will be stymied by means of resistance at 1.0281 and 1.0306. Alternatively, supports are seen at 1.0198, ahead of 1.0173 and 1.0144.
In Canada, the highly anticipated BoC interest rate decision was held at 1.0%, matching consensus estimates. The Bank of Canada has highlighted in its statements that due to 'persistent' supply bottlenecks, Canadian heavy crude already trades at a discount to global prices. A secular change in the commodity sector would sharply reduce export earnings and more importantly, investment expectations domestically.