Bank of Canada may deliver huge rate hike, USDCAD dips.
“According to Bank of Canada, inflation is viewed as being more pervasive.”
Recently, Bank of Canada announced that consumer expectations for inflation have risen, alongside with concern towards price of food, gas, and rental. In a separate survey, BoC reported that businesses in Canada expects inflation to linger at higher level for longer-term and many is planning to pass the cost onto consumers. Rising expectation for higher inflation condition in Canada reinforces the market to expect swift action from BoC, who may follow the suit of other major central banks such as Federal Reserve.
Quick recap on USDCAD
USDCAD continues to oscillate within an ascending channel as retraces off the top level.
USDCAD Weekly Technical Analysis
The pair retraced significantly as it currently testing to close below the 200-MA line. Overall momentum is skewed towards the downside due to diminishing momentum from the MACD.
USDCAD Daily Technical Analysis
In daily perspective, USDCAD shows significant selling pressure from the upside due to recent few long candlestick shadows.
ORDER: SELL STOP
STOP LOSS: 1.2945
Target 1: 1.2670
Target 2: 1.2580
ZFX Analyst’s Comment
The pair is expected to experience weakness in the near-term as it retraced from the top level of ascending channel. A close below 200-MA line in the 4 hourly chart may provide confirmation thereafter.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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