Canadian Dollar (CAD) Price Slips as BoC Leaves Interest Rates Unchanged

USDCAD Price, Chart and Analysis:

• Bank of Canada leaves monetary policy unchanged.

• USDCAD hits a six-month high.

Q2 2019 CAD Forecast and USD Top Trading Opportunities

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Bank of Canada (BoC) governor Stephen Poloz left interest rates unchanged at 1.75%, in-line with market expectations, and rates are now likely set to stay put until after the federal elections in October. While Canadian inflation is at or near the 2% target, the BoC has recently trimmed its growth forecasts and suggested a pick-up is unlikely until H2 2019 or later. In the release the BoC made no mention of returning to a ‘neutral rate’, a line seen in the past announcements, giving todays release a marginally dovish overtone. The next BoC rate decision is on July 10.

USDCAD touched a near six-month high (1.3521) earlier in the session and blew through that level post-release. USDCAD is currently trading at 1.3540 and now looking at the January 2 high at 1.3670 as its next bull target.

Canadian Dollar Forecast: USDCAD Eyeing a Rally off the Consolidation Zone.

USDCAD Five-Minute Price Chart May 29, 2019.

Retail traders are 23.9% net-long USDCAD according to the latest IG Client Sentiment Data, a bullish contrarian indicator. Recent daily and weekly positional changes however give us a stronger bullish contrarian bias.

We run several Trader Sentiment Webinars every week explaining how to use IG client sentiment data and positioning when looking at a trade set-up. Access the DailyFX Webinar Calendar to get all the times and links for a wide range of webinars.

What is your view on USDCAD – bullish or bearish？ You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.