USDCAD Price, Chart and Analysis:
- Bank of Canada leaves monetary policy unchanged.
- USDCAD hits a six-month high.
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Bank of Canada (BoC) governor Stephen Poloz left interest rates unchanged at 1.75%, in-line with market expectations, and rates are now likely set to stay put until after the federal elections in October. While Canadian inflation is at or near the 2% target, the BoC has recently trimmed its growth forecasts and suggested a pick-up is unlikely until H2 2019 or later. In the release the BoC made no mention of returning to a ‘neutral rate’, a line seen in the past announcements, giving today’s release a marginally dovish overtone. The next BoC rate decision is on July 10.
USDCAD touched a near six-month high (1.3521) earlier in the session and blew through that level post-release. USDCAD is currently trading at 1.3540 and now looking at the January 2 high at 1.3670 as its next bull target.
USDCAD Five-Minute Price Chart May 29, 2019.
Retail traders are 23.9% net-long USDCAD according to the latest IG Client Sentiment Data, a bullish contrarian indicator. Recent daily and weekly positional changes however give us a stronger bullish contrarian bias.
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