The Bank of Canada pout some cold water on hike expectations

The warning about Q3 growth and the dailing down of inflation and GDP forecasts have sent traders scratching another hike off the board anytime soon.

USDCAD has jumped to test the August highs around 1.2780, coming up 5 pips short.

USDCAD daily chart

It’s a big level up here and could be the decider for a push into 1.2800. Watch for further failures into here now as that could mean we take some of these gains back. Support is likely to be building around 1.2640 and 1.2700.

One thing with central bank shifts, or the markets view of any shifts, is that it can change a price for a while to come, Short in this pair could be the dangerous path for now.

Ryan Littlestone

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