USD/CAD: Loonie trading on a weaker footing this morning

USDCAD

USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 2.65% against the CAD and closed at 1.3387.

The Bank of Canada (BoC), in its latest policy meeting, lowered its key interest rate by 50 basis points to 1.25% from 1.75%, in an effort to contain the economic impact of the coronavirus outbreak. In a statement following the interest rate decision, the BoC stated that the outlook for the Canadian economy “is clearly weaker” than it was just a few weeks ago, pointing to disrupted supply chains and rattled business and consumer confidence from the virus, as well as rail line blockades, job action by Ontario teachers and harsh winter weather.

In the Asian session, at GMT0400, the pair is trading at 1.3398, with the USD trading 0.08% higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.3342, and a fall through could take it to the next support level of 1.3287. The pair is expected to find its first resistance at 1.3442, and a rise through could take it to the next resistance level of 1.3487.

In absence of any macroeconomic releases in Canada today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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