USD/CAD (U.S. dollar – Canadian dollar) retained a negative bias on Wednesday after the Bank of Canada voted to keep interest rates unchanged at 5.0%. While the decision to maintain the status quo was largely anticipated, the BoC left the door open for additional hikes despite abandoning its hawkish inflation characterization and acknowledging that the economy is no longer in excess demand.
From a technical standpoint, USD/CAD climbed earlier in the week, but turned lower after failing to take out trendline resistance near 1.3600, with prices subsequently slipping below the 100-day moving average. If losses accelerate in the coming days, support stretches from 1.3515 to 1.3485, where the 200-day SMA aligns with the December swing lows. On further weakness, the focus shifts to 1.3385.
