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"There is still some desire on the part of the Bank [of Canada] to take interest rates higher. They're really trying to send a message to the market that pricing in cuts is an unwise suggestion."
- TD Securities (based on Reuters)
Pair's Outlook
The greenback slightly pairs previous daily losses against the Canadian dollar, though the downward pressure still weighs on the pair. In case a bullish reversal emerges, 1.0170 (PP Weekly) is going to be an initial resistance line for currency traders. If this level is left behind, investors might encounter the second and third resistance lines at 1.0229 (55-day SMA) and 1.0298 (Upper Bollinger band; R2 Weekly), accordingly.
Traders' Sentiment
The largest share of currency traders (65%) keeps a bullish outlook on the pair as for now investors anticipate further rally on the pair. Over 100-pip range from the latest market price, 61% of market participants expect the greenback to appreciate versus the Canadian dollar.
© Dukascopy Bank SA