Forex: USD/CAD

Forex: USD/CAD

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Forex: USD/CAD - BoC Carney sets bearish tone again

FITITOL--> FXstreet.com (Barcelona) - USD/CAD is levitating around the 0.9850ish after the US Dollar was given a hard knock from session highs just shy off 0.9900 through the American. The pair managed to exchange hands as cheap as 0.9830 before staging a modest recovery which is currently about to encounter former April 17, March 19 support at 0.9860. Recent long plays may be in peril after a sizeable bearish outside bar was printed.

The catalyst behind today's Canadian Dollar surge mid American session follows BoC Governor Mark Carney speech at a ceremony awarding him as Canadian of the Year from the Canadian Club in Toronto. The Governor stood firm on recent rhetoric over the necessity to modestly withdraw monetary stimulus , saying “it would be a mistake to think high commodity prices are temporary, frets about risks from housing and household debt."

The latest statements from Mr. Carney reaffirms rate hike expectations to continue marching forward after some CAD longs we re recently badly squeezed from a 7-month high following disappointment on the Canadian economy unexpectedly shrinking to the tune of -0.2% in February - to the shock of most traders and economists - dragged down by temporary shutdowns in oil and metal production, Statistics Canada said Monday.