Rate Cut And Talk Of Quantitative Easing Has Weakened The Canadian Dollar

The USD/CAD is testing the highs from yesterday once again after the 50 basis point cut by the Bank of Canada.  Although expected, the market was a bit concerned of a smaller than expected cut - mainly due to the surprise non cut by the Reserve Bank of Australia.  However, the bank did what was expected and the rate now stands at 0.5%.

The high from yesterday came in at 1.2932. The high for todayis now 1.2945 but the price has backed off.

Everyone knows of the triple top in the USD/CAD which comes in at the 1.3000 to 1.3015 level.   Now that the news is out, and the price still remains below the key level, the hurdle may become harder to overcome.  Nevertheless, the bias remains to the upside.

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