4 Mar 2015
USD/CAD: Stabilising ahead of key support in 1.23 handle
FXStreet (Guatemala) - USD/CAD is currently trading at 1.2420 with a high of 1.2547 and a low of 1.2415.
USD/CAD is stabilising on the 1.2420 level post a drop from 1.2542 when BoC left rats on hold. Further pressures could test key support in the upper 1.23 area shortly. The Bank of Canada left its target for the overnight rate at 0.75% while the economy is evolving as the Bank had anticipated at the time of the surprise rate cut in January and financial conditions have eased, as explained by analysts at Rabobank. "Stronger demand from the US should benefit Canadian exports and increase incentives for Canadian firms in the non-energy sector to invest. Over time, this should ignite a re-acceleration of the Canadian economy."
"In the longer term, the recent depreciation of the Canadian dollar should offer some relief to the economy: USD/CAD has risen from 1.06 in July 2014 to about 1.25 in February 2015. "
USD/CAD is stabilising on the 1.2420 level post a drop from 1.2542 when BoC left rats on hold. Further pressures could test key support in the upper 1.23 area shortly. The Bank of Canada left its target for the overnight rate at 0.75% while the economy is evolving as the Bank had anticipated at the time of the surprise rate cut in January and financial conditions have eased, as explained by analysts at Rabobank. "Stronger demand from the US should benefit Canadian exports and increase incentives for Canadian firms in the non-energy sector to invest. Over time, this should ignite a re-acceleration of the Canadian economy."
"In the longer term, the recent depreciation of the Canadian dollar should offer some relief to the economy: USD/CAD has risen from 1.06 in July 2014 to about 1.25 in February 2015. "