The USD/CAD pair declined on Wednesday as increased bets that Bank of Canada will hike interest rate this year and weaker dollar across the board boosted Canadian dollar. Chances of a rate hike this year have surged to m…
The USD/CAD pair declined on Wednesday as increased bets that Bank of Canada will hike interest rate this year and weaker dollar across the board boosted Canadian dollar.
Chances of a rate hike this year have surged to more than three-in-four after hawkish comments this week from central bank officials, including Governor Stephen Poloz.
Gains for the loonie came even as prices of oil, one of Canada's major exports, fell after data showed a build in U.S. crude stocks and OPEC reported a rise in its production despite a pledge to cut supply.
The U.S. dollar fell against a basket of major currencies after the release of weaker-than-expected U.S. inflation and retail sales data.
The currency pair is trading around 1.3223 levels and it is set to decline further towards 1.3150 and 1.3080 in the short term.
To the upside, the strong resistance can be seen at 1.3306, a break above will take the pair towards next resistance level at 1.3400.
To the downside immediate support can be seen at 1.3120 levels, a break below will open the door towards next level at 1.3046.
