USD/CAD outlook after the Bank of Canada
The Bank of Canada didn’t change its monetary policy on Wednesday, holding the benchmark rate at 1.00%. The central bank sounded positive saying that “Canada’s economy is showing signs of a broadening recovery” – this comment was positive for Canadian dollar and negative for USD/CAD.
USD/CAD is now consolidating around 1.1350 in a triangle on H4 as the market awaits US NFP data due on Friday.
Analysts at Credit Agricole believe that USD/CAD will slide to 1.1222 in the coming weeks on good prospects for Canada. Although oil price has significantly declined, Canada’s oil exports account for only 5% of GDP, so the “oil” links to CAD are a bit exaggerated. In addition, the specialists say that oil prices will likely stabilize.