USD/CAD breached 1.3100 post-BoC

The Canadian dollar is now gathering further traction, rapidly sending USD/CAD to print fresh lows in the mid-1.3000s.

USD/CAD lower on steady BoC

The pair met further downside pressure after the Bank of Canada kept its monetary policy unchanged at today’s meeting, leaving the key rate at 0.50% as universally expected.

The central bank sees some contraction in the second quarter following the recent wildfires in the Alberta region, while it expects the activity to rebound in the subsequent quarter.

Further data in the US docket saw advanced Markit’s Services PMI at 51.2 for the current month vs. 53.1 forecasted, adding to the dollar’s decline.

USD/CAD significant levels 

As of writing the pair is losing 0.53% at 1.3058 and a break below 1.2986 (23.6% Fibo of 1.4692-1.2458) ahead of 1.2946 (55-day sma) and then 1.2925 (20-day sma). On the flip side, the next hurdle lines up at 1.3188 (high May 24) followed by 1.3312 (38.2% Fibo of 1.4692-1.2458) and finally 1.3366 (200-day sma).