CAD continues to dominate USD since the Rate Hike decision by the Bank of Canada. USD is expected to be bearish further in the coming days. USD has been quite weak recently due to bad economic reports in several recent weeks. The BOC rate hike provided CAD with support. Today Canada’s Manufacturing Sales report was published with a better than expected figure at 1.1% which was expected be at 0.9% and previously it was at 0.4%. On the USD side, today the Building Permits report showed a good growth to 1.25M from the previous value of 1.17M which was expected to be at 1.20M and Housing Starts also showed growth to 1.22M from the previous value of 1.12M which was expected to be at 1.16M. Moreover, today US Crude Oil Inventories report is also going to be published which is expected to show less deficit to -3.6M which previously was at -7.6M. To sum up, though some positive US economic reports were published today CAD is still dominating USD which signals further bearish momentum in this pair for the coming days. As traders share the sentiment of the next rate hike by the Bank of Canada, the bearish bias is expected to remain intact in the future.
Now let us look at the technical chart. The price has been in a non-volatile bearish trend and it is expected to continue downwards until the price falls towards 1.2450 support level in the coming days. As the price remains below 1.2650 resistance level, further bearish pressure is expected in this pair and bearish bias is expected to be quite intact in nature as well.
The material has been provided by InstaForex Company – www.instaforex.com