USD/CAD drops further post-BoC, near 1.3270

The Canadian Dollar has picked up extra pace today, now sending USD/CAD to record fresh daily lows in the 1.3280/70 band.

USD/CAD weaker on steady BoC

CAD met further buying interest after the Bank of Canada left intact its overnight rate at 0.50% at its meeting today, matching the broad consensus.

The central bank noted that there still is ‘considerable’ uncertainty around the domestic outlook while material slack persists. It further noticed that the GDP has expanded faster than what was projected in the latest MPR and employment data has been ‘robust’.

The BoC said that temporary effects of higher energy prices have been supporting domestic inflation figures, while it expects the CPI to head lower in the next months as those transitory effects evaporate.

USD/CAD significant levels

As of writing the pair is down 0.38% at 1.3276 facing the immediate support 1.3262 (low Mar.21) followed by 1.3251 (50% Fibo of the January-March up move) and finally 1.3221 (200-day sma). On the upside, a break above 1.3340 (high Apr.12) would aim for 1.3319 (38.2% Fibo of the January-March up move) and then 1.3356 (20-day sma).