Bank of Canada Interest Rate Decision

The USDCAD traded lower, since the start of June, reversing from the 1.3650 price level, now hovering along the 1.34 price level.

Over the last couple of days, the USDCAD had been in a narrow downward range.

The Bank of Canada (BoC) is due to announce its interest rate decision. With the current rates at 4.50%, there has been speculation that a surprise rate hike could be decided (similar to what happened with the RBA and the AUDUSD).

However, I think that the data might not support such a surprise, with the BoC likely to maintain its current interest rate level.

This is likely to cause the USDCAD to trade higher, from this current area of 1.34 toward the immediate resistance level of 1.35.