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.