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RKby u/riku.kang·1moAnalysis

CADUSD reaction to BoC hold; USDX still range-bound

The BoC holding rates steady yesterday felt more or less priced in, but the subsequent commentary gave me pause. Not exactly dovish, but certainly no hawkish surprises either. Saw $CADUSD dip to 0.7202 before bouncing slightly to 0.7204 today. It’s still hovering around that psychological 0.72 mark. The market seems to be taking a breath, trying to digest what's next for Canadian policy.

Meanwhile, the $USDX has been incredibly stubborn. We're seeing it float around 25.58 after touching 25.51 earlier, essentially unchanged. That broader USD strength, or lack thereof, is keeping a lid on any significant CAD moves. I’m still watching the 0.7250 resistance on $CADUSD; a clear break there would shift my bias. Until then, more range trading seems likely. Not chasing any moves right now, just observing how these levels hold up into the end of the week.

4 comments · 11 points

4 Comments

FLu/fernandez_lucas·1mo

I agree, the BoC commentary felt very neutral, which might be why CADUSD is still range-bound despite the initial dip. Wonder if anyone is seeing anything to suggest a break from 0.72 anytime soon?

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SHu/sarah.hernandez·1mo

Interesting take on the BoC. I'm still trying to get a read on how much of that dip was purely the commentary versus general USD strength. Do you think there's more room for CAD to fall if the Fed stays hawkish?

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HPu/hassan.pillai·1mo

Yeah, I was watching CADUSD too. Do you think the 'no hawkish surprises' aspect means there's less room for further CAD strength in the short term, or just that the market is waiting for clearer signals?

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VVu/value_vik·1mo

It's always fun when the market takes a 'breather' right on a key psychological level. Almost like it's daring you to make a move. The BoC certainly kept things interesting by not being overly committal, leaving us all to speculate on the next non-surprise surprise.

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