USD/CAD clocks fresh seven-month high in Asia

Offered tone around CAD gathered pace again in Asia, sending the USD/CAD pair to a fresh seven-month high of 1.3358 levels.

Dovish signals from BOC behind the fall

The central bank on Wednesday talked about possibility of cutting interest rates in its latest monetary policy report. Experts say markets are now loking for a high probability of a rate cut. The dismal August retail sales and annual inflation for September bolstered the hopes of rate cut, thus sending the USD/CAD pair to a high of 1.3355 on Friday.

The pair revisited 1.3325 levels in Asia only to jump to a fresh seven-month high of 1.3358 levels.

USD/CAD Technical Levels

A break above 1.3405 (Mar 16 high) would open doors for 1.3446 (Mar 9 high). A violation there could yield 1.35 levels. On the lower side, beach of Asian session low of 1.3325 would expose 1.33 (zero figure) under which losses could be extended to 1.3228 (5-DMA).