USD/CAD rose to fresh tops above 1.2900 on BoC
- The pair clinched new daily highs near 1.2940 on BoC.
- Dovish comments from Governor S.Poloz hurt CAD.
- US CPI figures rose in line with prior surveys in February.
The selling pressure around the Canadian Dollar is now building up and is helping USD/CAD to break above the critical 1.2900 barrier, recording fresh session tops at the same time.
USD/CAD higher on Poloz
Spot managed to return to levels above the 1.2900 milestone in response to dovish comments from BoC’s Governor S.Poloz.
Governor Poloz emphasized that the economy could handle more growth without sparking extra inflation.
Poloz also stressed that there is still some slack in the domestic labour market, while he reiterated the ‘data-dependant’ stance of the Canadian monetary conditions. He, however, remains optimistic on the health of the economy.
The pair therefore rapidly advanced to fresh 3-day peaks above 1.2900 the figure, helped by both the dovish stance from Poloz and weaker crude oil prices.
USD/CAD significant levels
As of writing the index is advancing 0.65% at 1.2925 facing the next up barrier at 1.2962 (high Mar.8) seconded by 1.3001 (2018 high Mar.5) and finally 1.3349 (high Jun.21 2017). On the downside, a breach of 1.2803 (low Mar.12) would target 1.2722 (38.2% Fibo of the 2017 drop) en route to 1.2665 (200-day sma).