24 Feb 2015
USD/CAD slumps to 1.2530 on Poloz
FXStreet (Edinburgh) - The Canadian dollar is sharply appreciating vs. the US dollar on Tuesday, sending USD/CAD to test 2-day lows around 1.2530.
USD/CAD weaker on Poloz comments
The pair is now trading deep into the red territory after BoC Governor S.Poloz stressed that the current decline in oil prices is a ‘net negative’ for the economy, hampering prospects of economic growth and plotting at the same time against inflation figures reaching the target. He also added that the recent rate cut acts as insurance, and will increase the confidence in the economy reaching full capacity and stable inflation towards year-end in 2016. Poloz argued that the economy remains committed to flexible exchange rate.
USD/CAD levels to consider
The pair is now retreating 0.36% at 1.2530 and a breakdown of 1.2511 (Tenkan Sen) would target 1.2422 (low Feb.20) en route to 1.2360 (low Feb.17). On the other hand, the immediate hurdle aligns at 1.2665 (high Feb.24) ahead of 1.2697 (high Feb.11) and finally 1.2772 (high Feb.2).
USD/CAD weaker on Poloz comments
The pair is now trading deep into the red territory after BoC Governor S.Poloz stressed that the current decline in oil prices is a ‘net negative’ for the economy, hampering prospects of economic growth and plotting at the same time against inflation figures reaching the target. He also added that the recent rate cut acts as insurance, and will increase the confidence in the economy reaching full capacity and stable inflation towards year-end in 2016. Poloz argued that the economy remains committed to flexible exchange rate.
USD/CAD levels to consider
The pair is now retreating 0.36% at 1.2530 and a breakdown of 1.2511 (Tenkan Sen) would target 1.2422 (low Feb.20) en route to 1.2360 (low Feb.17). On the other hand, the immediate hurdle aligns at 1.2665 (high Feb.24) ahead of 1.2697 (high Feb.11) and finally 1.2772 (high Feb.2).