USD/CAD should be worth keeping on the watchlist, as this week’s Bank of Canada meeting and key US economic data may spark additional volatility.
The BOC led the way in raising interest rates last year and is now doing the same in slowing the pace of tightening. Traders are currently anticipating a 25bps rate hike this week as inflation in Canada has been showing signs of easing while the jobs market has stayed strong.
USD/CAD has traded in a horizontal range between 1.3321 and 1.351 for most of this month, and if the pair is to breakout, Wednesday’s BOC decision could be key for the direction in which it moves.
Check out this article for deeper technical analysis into USD/CAD: