Forex Flash: BoC unlikely to raise rates with Fed dovish – TD Securities

FXstreet.com (Barcelona) - The dovish-leaning BoC statement pushed the USDCAD more decisively higher yesterday. "Rate increases were hardly lurking just around the corner but the BoC's characterization of rate hikes as being "less imminent" makes a distant prospect even less of a threat", wrote analysts Shaun Osborne and Greg Moore, pointing to a dovish Fed on the other side, which puts doubt to the BoC's willingness to raise rates, at least without prompting a further uncomfortable rise in the exchange rate.

As the USDCAD grinds higher from the low 0.98 support zone in the past few days, with a little more momentum behind it now than in late November, "so a push toand throughthe peaks seen then looks a slightly stronger risk", say TD Securities analysts, pointing to intraday support at 0.9990 and key support at 0.9950.