CAD is in investors’ focus ahead of the BOC conference on Wednesday. Is a rate hike likely? Let’s take a quick chart tour.
In anticipation of the BOC’s decision to increase rates, the market already priced a USDCAD sell-off to an extent of 80%. If BOC chooses to postpone the rate hikes considering the NAFTA-associated risks, the pair may rally on uncertainty surrounding the Canadian policymakers’ resolution. Nevertheless, there’s little to say ahead of the actual BOC conference.
Ahead of the big event, buck-Loonie started the day with an impetuous open at 1.24533. However, the lack of follow-through in its steady upward move above 1.2400s has kept USDCAD in the 1.24 support territory.
Meanwhile, the subdued oil prices, with US crude lingering in the area of $63.52 had no impact on the commodity-linked Loonie. More impetus in the pair is provided by the recovering buck, which has seen an increase in demand.
Investors eagerly await the BOC conference while keeping their hopes high for potential rate hikes that will likely boost the CAD.
CHF Turning a Blind Eye to SNB Chair Talk
Despite the SNB Chair’s comments in Tuesday’s press conference that the CHF was highly valued, USDCHF was unshattered in its downtrend, seeing a close at 0.96249. The bearish pattern of the pair was rather influenced by the 0.7% gain in the US dollar index (DXY), which failed to maintain its stance above the mid-90s and retraced most of its daily gains. DXY hit 90.20 on Tuesday.
On Wednesday, USDCHF opened at 0.96249 and steadily pipped up to 0.96360 (live chart).