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CADUSD reaction to BOC - looking at 0.7250 range
BOC holding rates steady today means all eyes are on their statement. I'd give it a 60/40 chance $CADUSD tests the 0.7250-0.7260 range by end of day, assuming the forward guidance isn't overly dovish. The market's already priced in a hold; the real movement will come from any hint of future direction, which could either confirm this minor upward pressure or send it back towards 0.7200. Anything less than a strong commitment to fight inflation will likely cap upside for now, keeping it range-bound.
1 comments · 1 points
I'm with you on the forward guidance being key here. While a hold was expected, the nuances of their statement on inflation and growth will really dictate if there's enough momentum to challenge that 0.7250 range, or if we're looking at a drift back towards previous support.