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2 May 2013
Forex: USD/CAD testing 1.0110 offers after new BoC announcement
FXstreet.com (Barcelona) - The USD/CAD is trading on a slightly bid tone following the appointment of Mr. Poloz as the new BOC Governor. After finding a major barrier at 1.0050, failed to be penetrated after up to four attempts since April 30, the exchange rate is now threatening supply area at 1.0123/1.0110, as per the drop-base-drop from April 29/30.
According to Adam Button: "The thinking is that since Poloz comes from a government agency aimed at boosting exports he will be more prone to weaken the Canadian dollar to boost exports. That’s it. If you think it takes a PhD to trade, the geniuses behind the last 25 pip move in the CAD crosses are telling you differently."
In view of TDS analysts: "As yet, there is no obvious sign of a strong bounce. The charts suggest that the 1.0100/05 remains the pivotal resistance on the short-term charts. Above 1.0105 should allow for a decent short-term bounce to the 1.0140/60 range."
There has been a last headline courtesy of Dow Jones referring Mr. Poloz's inflation target view as "sacrosanct" or in christian terms, regarded as too relevant to be interfered with or violated.
According to Adam Button: "The thinking is that since Poloz comes from a government agency aimed at boosting exports he will be more prone to weaken the Canadian dollar to boost exports. That’s it. If you think it takes a PhD to trade, the geniuses behind the last 25 pip move in the CAD crosses are telling you differently."
In view of TDS analysts: "As yet, there is no obvious sign of a strong bounce. The charts suggest that the 1.0100/05 remains the pivotal resistance on the short-term charts. Above 1.0105 should allow for a decent short-term bounce to the 1.0140/60 range."
There has been a last headline courtesy of Dow Jones referring Mr. Poloz's inflation target view as "sacrosanct" or in christian terms, regarded as too relevant to be interfered with or violated.