Canadian Dollar Holds on Gains Against the Greenback On the Back of Poloz Comments

The Canadian dollar fell into a consolidation versus the greenback on Wednesday after having soared to a 10-month high of C$1.2912 to the dollar in the previous session. The Loonie received a huge support from hawkish comments of Bank of Canada Governor Stephen Poloz.

The pair USDCAD was nearly unchanged in early trade in Asian session, holding around C$1.2934 per dollar after dropping nearly 0.5 percent on Tuesday. BOC’s Governor Stephen Poloz was reported to claim that the central bank’s stimulus monetary policy should be normalized before Canada’s inflation hits BOC’s target, which was also anticipated to be well into an uptrend by the first half of 2018.

Poloz’s comments did not only spur the chance of a rate hike at the central bank’s next meeting on July 12 to above 50 percent but was also in turn with its counterparts in the Euro zone and the England (the European Central Bank and the Bank of England) which signaled future tightening in their policies last week.

U.S. market will reopen today after having closed for July 4th holiday. Later in the day, the Federal Reserve will release minutes of its most recent policy meeting where the central bank raised interest rates as widely expected.

Trade suggestion

Sell Stop at 1.29200, Take profit at 1.28600, Stop loss at 1.29500

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