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.
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?