Back
14 Apr 2015
CAD attention to the BoC on Wednesday – Scotiabank
FXStreet (Edinburgh) - In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, tomorrow’s BoC monetary policy meeting will be the main driver for the CAD in the near term.
Key Quotes
“Markets are pricing a small chance of an interest rate cut tomorrow, which we do not expect to materialize; however for USDCAD the direction is likely to come form the more detailed MPR and comments from Governor Poloz”.
“We expect USDCAD to range trade in the near‐term, to remain correlated with oil prices and in tandem with the broad USD move higher, to be at risk of a temporary upside break (CAD weakness)”.
“Technicals are still struggling to shift towards buy signals and accordingly are providing little in terms of near‐term direction. Support lies at the 50‐day MA at 1.2560, followed by 1.2500; while resistance comes in at this week’s high of 1.2667”.
Key Quotes
“Markets are pricing a small chance of an interest rate cut tomorrow, which we do not expect to materialize; however for USDCAD the direction is likely to come form the more detailed MPR and comments from Governor Poloz”.
“We expect USDCAD to range trade in the near‐term, to remain correlated with oil prices and in tandem with the broad USD move higher, to be at risk of a temporary upside break (CAD weakness)”.
“Technicals are still struggling to shift towards buy signals and accordingly are providing little in terms of near‐term direction. Support lies at the 50‐day MA at 1.2560, followed by 1.2500; while resistance comes in at this week’s high of 1.2667”.