The Bank of Canada (BoC) elected to leave its key interest rate steady at 0.25%. It also opted to leave its quantitative easing program at present levels. These were the highlights of its last rate decision statement for 2020, released this Wednesday afternoon.
The BoC also hinted at leaving rates at the lower end of the band until the Canadian economy saw a significant pickup. This view means that Canada could see a low-rates environment for the next 2-3 years.
For the USDCAD, the BoC decision leaves the status quo unchanged; the loonie continues to overpower the greenback, leading to a resumption of the decline this Wednesday.
The USDCAD is down 0.11% but is well off intraday lows after a surprise jump in crude oil inventories, in data released by the US Energy Information Administration.
Technical Outlook for USDCAD
The slide in the USDCAD continued this Wednesday after a slight reprieve at the start of the week. The price is now challenging the 1.27831 support level. A breakdown of this support allows for a further decline towards 1.27315. 1.26021 is potential support as well if the deterioration of price is extensive.
On the flip side, a break above the current consolidation allows for a reprieve to the upside. This move, which targets 1.29241 initially, could also put the USDCAD on a collision course with 1.29953 and 1.30385 as these are also potential near-term upside targets.
Don’t miss a beat! Follow us on Telegram and Twitter.
USDCAD Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.