FxWirePro: USD/CAD steadies around 1.3990 ,retains bid one

• 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