USDCAD bulls waiting for dovish shift in BOC's rhetoric
The technical picture for the
USDCAD
remains very interesting, particularly with today's rate decision coming from the Canadian central bank.
Last week's Canadian inflation data was published, coming in at 1.9% (YoY) for March 2019, up from 1.5% from the previous month; meeting market expectations while printing at the highest level since December, so it will be interesting to see if the Bank of Canada shows a slight hawkish touch.
When looking at the resulting price action of the USDCAD after last week's inflation rate and seeing that the CAD didn't take on any serious momentum, stabilising above 1.3250, it appears that market participants don't see a hawkish shift, especially after last March's rate decision and rhetoric.
Lat March, Governor Poloz and his colleagues removed the tightening bias in their statement, acknowledging "more pronounced and widespread" global economic slowdown, and noted that "trade tensions and uncertainty are weighing heavily on confidence and economic activity" and "global economic prospects would be buoyed by the resolution of trade conflicts."
In this context, any dovish hints have the potential to initiate a bullish breakout above 1.3470, activating current yearly highs of around 1.3670/3700 as an initial target.
Technically, only a drop below 1.3250 would darken the technical picture, and activate 1.3080/3100 on the downside.
USDCAD
remains very interesting, particularly with today's rate decision coming from the Canadian central bank. Last week's Canadian inflation data was published, coming in at 1.9% (YoY) for March 2019, up from 1.5% from the previous month; meeting market expectations while printing at the highest level since December, so it will be interesting to see if the Bank of Canada shows a slight hawkish touch.
When looking at the resulting price action of the USDCAD after last week's inflation rate and seeing that the CAD didn't take on any serious momentum, stabilising above 1.3250, it appears that market participants don't see a hawkish shift, especially after last March's rate decision and rhetoric.
Lat March, Governor Poloz and his colleagues removed the tightening bias in their statement, acknowledging "more pronounced and widespread" global economic slowdown, and noted that "trade tensions and uncertainty are weighing heavily on confidence and economic activity" and "global economic prospects would be buoyed by the resolution of trade conflicts."
In this context, any dovish hints have the potential to initiate a bullish breakout above 1.3470, activating current yearly highs of around 1.3670/3700 as an initial target.
Technically, only a drop below 1.3250 would darken the technical picture, and activate 1.3080/3100 on the downside.
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