• USD/CAD steadied around 1.3990 as Investors focused on Middle East peace optimism, easing energy cost concerns
• The Bank of Canada kept its benchmark interest rate unchanged at 2.25% for a fifth consecutive meeting, noting little evidence that higher energy prices were driving broader inflation..
• Investors were pricing in 24 basis points of tightening by the end of the year from the BoC, down from 37 basis points before Wednesday's rate decision, swap market data showed..
• Dovish signals from the Bank of Canada this week, coupled with hopes of a looming U.S.-Iran peace deal, reinforce expectations that the central bank will keep interest rates unchanged.
• Oil prices, a key Canadian export, fell 3.8% to $84.38 per barrel, while traffic through the Strait of Hormuz—responsible for about one-fifth of global oil and LNG shipments—has been severely disrupted by the war.
• Immediate resistance is located at 1.3995(23.6%fib), any close above will push the pair towards 1.4042(Higher BB).
• Support is seen at 1.3931 (June 11th low) and break below could take the pair towards 1.3892(38.2%fib).
Recommendation: Good to buy around 1.3850, with stop loss of 1.3770, and target price of 1.4050
