USD/CAD recovers from multi-week lows after Poloz's comments

The USD/CAD pair fluctuated sharply during the BoC press conference. After slipping to a new six-week low at 1.3256, the pair managed to recover most of the daily losses as Bank of Canada Governor Stephen Poloz continued his remarks. At the moment, the pair is down 0.13% at 1.3310.

Today, the Bank of Canada decided to maintain its overnight rate target at 0.5%. The accompanying press release highlighted that although the recent data indicate that economic growth has been faster than was expected in January meeting, there are still uncertainties weighing on the outlook.

At the scheduled press conference, Governor Stephen Poloz said that a rate cut was not on the table at this time, but it was still a possibility if risks are realized. Despite the recent strong data, Poloz said that they were cautious as the uncertainty in Washington was part of the equation.

• BoC's Poloz: Further easing in policy remains possible in sense there may be risks in outlook realized
• BoC's Poloz: We're decidedly neutral on interest rates given circumstances and risks

In the meantime, the US Dollar Index has recovered above 100.50 region after finding support at 100.45. The 10-year U.S. Treasury yield is also giving a hand to the greenback as it's making another attempt to rise towards 2.3%.

1.3245 (200-DMA) could be the first technical support before the pair faces 1.3200 (psychological level) and 1.3160 (Feb. 28 low). To the upside, the immediate resistance could be seen at 1.3340 (daily high) followed by 1.3375 (20-DMA) and 1.3425 (Apr. 10 high).