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Forex Flash: USD/CAD risk comes in the BoC outlook – TD Securities

FXstreet.com (Barcelona) - In regard to the BoC policy meeting of today, being one of Governor Carney’s last major policy decisions before he leaves for the BoE, TD Securities analysts expect much attention given to the event. “The overnight rate will remain at 1.00% and the statement will continue to reflect a very mild tightening bias, it is widely expected”, wrote analysts Shaun Osborne and Greg Moore, adding that “the risk for the CAD comes in the messaging on the outlook, however, with the BoC likely to moderate further its message on the economy considering the weak growth trend evident in the domestic economy so far this year”. In terms of USD/CAD trading, TD Securities analysts note that the market has struggled in the mid/upper 1.02 area so far this week but a clear push through 1.0250/60 intraday should be enough to signal an extension of this move up chart-wise. “The USD/CAD has been consolidating since the early March peak and this week’s push through resistance in the 1.02 are should signal the start of the next trending leg higher (we think 1.06 is reachable by mid-year)”, they concluded.

Session Recap: USD shines as market sentiment deteriorates

The US dollar strengthened on Wednesday, with the EUR and the GBP as the main losers, although there seems to be no major catalyst for the move. EUR/USD failed to break above 1.3200 and pulled back to the 1.3115 area, while GBP/USD dropped over 150 pips throughout the day to a low of 1.5227, weighed by UK employment data.
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American equity markets plummet Wednesday

The US stock market experienced a staunch decline at the opening Wednesday in the midst of earnings season and on the heels of Bank of America missed its estimates. Beginning with the indices and composites, the NASDAQ fell -0.97% as it settles in region of 3233.02, down -31.72 points in these moments. In addition, the S&P 500 is trading in negative territory, operating at 1560.24, descending -14.10 points or -0.90% at the time of writing. Finally, the Dow Jones has edged lower at the opening, trading in the zone of 14666.31, presently -0.61% after a movement of -90.47 points.
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