USD/CAD tested 1.2390 on minutes

FXStreet (Edinburgh) - The greenback accelerated its decline vs. the Canadian dollar on Wednesday, with USD/CAD now recovering from lows around 1.2390.

USD/CAD weaker post-FOMC

The pair tested fresh intraday lows in sub-1.1400 levels following the dovish statement from the FOMC minutes today. The Committee sees risk of further strengthening of the US dollar and many members were inclined to leave the rates at current levels for a longer period. The FOMC also suggested that the policy should stay data dependent.

USD/CAD key levels

As of writing the pair is advancing 0.35% at 1.2417 and a surpass of 1.2480 (high Feb.17) would open the door to 1.2493 (21-d MA) and then 1.2529 (Tenkan Sen). On the flip side, the immediate support lines up at 1.2360 (low Feb.17) ahead of 1.2353 (low Feb.3) and finally 1.2302 (Kijun Sen).

USD/JPY drops along with Treasury yields

The USD/JPY pair hit a low of 118.55, tracking the fall in the US Treasury yields after the Fed minutes showed little rush among policymakers to raise interest rates.
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FOMC Minutes: Rates might stay low for a longer time

FOMC latest minutes showed members remain reluctant to raise rates even when economic conditions have improved. According to the minutes, FOMC officials discussed the tradeoffs of the risks associated with the timing of the beginning of policy normalization and “many” were inclined to keep the federal funds rate at its effective lower bound “for a longer time”.
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