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"The [BoB] statement is fairly similar to the last one -- the tone is still hawkish. It highlights some deterioration but says the underlying momentum is still strong. It's positive for the Canadian dollar in the very near term."
- Bank of Nova Scotia (based on Bloomberg)
Pair's Outlook
USD/CAD committed a decline today as the Bank of Canada left the overnight interest rate unchanged at 1.00%. If the bearish reversal adds to gains, 1.0284 (S1 Weekly; Initial support line) is likely to be targeted by the bears. Once this level is successfully approached, 1.0174 (PP Monthly) and 1.0008 (100-day ma) are going to be in focus among bearish investors. However, the pair to preserve longterm bullish trend as it is trading above 200-day moving average.
Traders' Sentiment
Short position holders are remaining in a minority at the moment. Only 39% of traders have sold the US Dollar against the Canadian Dollar, whereas 77% are staying long on the currency pair.
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