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USD/CAD flies to 1.3080 on dovish BoC

FXStreet (Edinburgh) - The Canadian dollar is rapidly depreciating vs. the greenback post-BoC on Wednesday, sending USD/CAD to test the boundaries of 1.3080.

USD/CAD stronger on BoC

The pair saw its decline intensified after the Bank Of Canada left unchanged its monetary policy at today’s meeting, with the benchmark rate intact at 0.5%, as broadly expected.

The statement from the BoC sounded quite dovish, revising lower the growth forecasts for 2016 and 2017, while it now expects the economy to reach full capacity around H2 2017. Regarding inflation, the BoC now sees domestic consumer prices to remain below the 2% threshold until the first moths of 2017.

USD/CAD levels to consider

As of writing, the pair is advancing 0.61% at 1.3059 and a surpass of 1.3095 (Fibo 23.6% of 1.1916-1.3458) would open the door to 1.3159 (55-day sma) and then 1.3200 (psychological level). On the other hand, the next support aligns at 1.2945 (100-day sma) followed by 1.2861 (uptrend from June lows) and finally 1.2827 (low Oct.15).

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