The U.S dollar gained strength against the Canadian dollar on Wednesday, after the Bank of Canada left interest rates unchanged and downgraded its outlook for growth.
At the conclusion of its policy meeting, the BoC decided to hold its benchmark interest rate at 0.50%, in a widely expected move, and downgraded its economic outlook citing the “complex” aftershocks of lower oil prices.
The BoC also said the Canadian economy will grow just 2% in 2016 and 2.5% in 2017, down from previous forecasts of 2.3% and 2.6%.
Intra-day bias remains on the upside as 21 and 55 EMA are crossed northward signaling a bullish continuation in the pair in the long term picture. Also SSRC and MACD oscillator are in the buying zones respectively. Am expecting more rise to 1.3187 resistance in the medium term and a retest of 1.3455 high on the long term.
Tomorrow investors would be monitoring the Canadian Retail Sales and the U.S unemployment claims.