USD/CAD – Will 1.3000 Give Way?

USD/CAD – Will 1.3000 Give Way?

USD/CAD has once again found support at the 1.3050 level making a triple bottom on the hourly chart. With oil stuck at the $50/bbl level the loonie appears to be stalling along with crude.

Tomorrow, however, the market will hear from the BOC and the central bank is very likely to maintain a neutral posture given the recent strength in labor data. With Canadian economy performing better than expected and with PM Trudeau using fiscal stimulus to help drive demand, the BOC may not feel obligated to ease further. That’s likely to put a mild bid the loonie and could test the 1.3050 support once again if Governor Poloz suggests that no further accommodation is likely.

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