USDCAD Awaits Monetary Policy Decision

The USD has been having a hard few weeks being in its consistent weak state.  That said, the CAD will be releasing its monetary policy statement later tonight. If the release is positive for the CAD, it can capitalize over the USD.

BOC Outlook on the Economy

According to the BOC governor Tiff Macklem, the economy is doing quite well since June. Jobs data in June and May both recorded positive increases which was great for the CAD. Macklem also stated that consecutive rate cuts made the rates of Canada at a pretty low state. So now might be the time to push it higher. It will be seen later on when the news comes on board.

Technical Outlook

In the lower time frames, a trendline break is quite evident in the USDCAD. In the short term, price has been respecting an uptrend which was broken. Price further broke down from the 1.35766. The next level to look out for is 1.35369. Should price drop lower due to good CAD data, the price is most likely to halt at that point.

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