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- USD/CAD: Next stop in the downside is at 1.2230 – SocGen
USD/CAD: Next stop in the downside is at 1.2230 – SocGen
The Bank of Canada (BoC) will announce its monetary policy decisions at 14:00 GMT. A hawkish BoC should help the loonie. Economists at Société Générale point out that for CAD bulls next support is 1.2230.
Surpassing the 200-DMA at 1.2500 is crucial for a short-term bounce
“The BoC may announce the penultimate tapering step towards ending QE. Canadian money markets have also brought forward lift-off by the BoC to March 2022, adding an additional tailwind other than oil prices for the CAD. The guidance of the central bank is a first increase in 2H 2022. Bond purchases have been reduced already from CAD5 B to CAD2 B per week and a cut to CAD1 B today won’t be a surprise.”
“Daily MACD has dipped within negative territory which points towards continuation in pullback.”
“Next potential objectives are located at 1.2230 and projections of 1.2160/1.2115; this will be a crucial support.”
“Overcoming the 200-DMA at 1.2500 is essential for denoting a short-term rebound”.
See – BoC Preview: Forecasts from seven major banks, asset purchases to be cut
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