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4 Mar 2015
CAD weakens even though BOC rate cut less likely
FXStreet (Mumbai) - The Canadian dollar weakened, pushing the USD/CAD higher to 1.2505 levels, even though the Bloomberg polls show the Bank of Canada is less likely to cut the interest rates in its policy decision today.
Could CAD gain as rate cut bets fall?
The overnight interest Rate swap data in mid-February priced-in a more-than 75% chance that BOC Governor Poloz would lower rates. But he probability has now gone down to 24.5% after a better-than-expected GDP data and comments from policymakers.
However, the CAD is under pressure ahead of the decision as investors could be worried about the forward guidance. The probability of an interest rate cut at the meeting on April 15 could rise or fall based on Poloz comments today.
USD/CAD Technical Levels
The immediate resistance is seen at 1.250, above which gains could be extended to 1.2567. On the flip side, a break below 1.2479 could push the pair down to 1.2435 levels.
Could CAD gain as rate cut bets fall?
The overnight interest Rate swap data in mid-February priced-in a more-than 75% chance that BOC Governor Poloz would lower rates. But he probability has now gone down to 24.5% after a better-than-expected GDP data and comments from policymakers.
However, the CAD is under pressure ahead of the decision as investors could be worried about the forward guidance. The probability of an interest rate cut at the meeting on April 15 could rise or fall based on Poloz comments today.
USD/CAD Technical Levels
The immediate resistance is seen at 1.250, above which gains could be extended to 1.2567. On the flip side, a break below 1.2479 could push the pair down to 1.2435 levels.