A shock rate hike from the Bank of Canada has seen USDCAD trade down to the range lows, will this support hold, or will the price trade lower?
Watch the video to learn more…
USDCAD and the Surprise Interest Rate Hike by Bank of Canada
In a surprising move, the Bank of Canada (BoC) has increased interest rates from 4.50% to 4.75%. This change comes after a noticeable rise in the 1st quarter GDP, employment rates, and the Consumer Price Index (CPI).
The USDCAD currency pair has reacted to this change, trading within a large range and returning to support lows at 1.3300. This could be a turning point, as the price might reverse from these lows.
The BoC’s unexpected rate increase has definitely stirred the currency market. The USDCAD pair is now one to watch as traders and investors adjust their strategies in response to these changes. It’s a reminder that the market can shift quickly, and being adaptable is key to success.
The price on the chart has traded through multiple technical levels and some observations included:
- Price is trading back at the range lows of 1.3300.
- If price finds support here, it could trade back to the range highs at 1.3650.
- A lower time frame change in trend could help traders identify a reversal move.
Have you watched our interview with GBPUSD analysis? You can see it here.
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