USDCAD is trading down 0.13% at 1.2660
The dollar fell on Wednesday after the U.S. Federal Reserve moved to a hawkish monetary policy but without delivering a tougher surprise that might have added to its weeks-long momentum.
The dollar index, which had gained 3% since the start of the Russia-Ukraine war on Feb. 24 and 10% since May, fell as much as 0.6% on Wednesday as traders parsed Fed statements following a two-day meeting.
The dollar lost value to the euro and the British pound, both of which had been up earlier in the day on hope for a compromise in Russia and Ukraine peace talks.
The euro and pound both gained 0.7%, with the euro trading at $1.1032.
The Fed raised interest rates by the expected quarter of a percentage point and projected its policy rate would reach a range of 1.75% to 2% by the end of this year and 2.8% next year.
The decline in the dollar index was surprising and could reflect disappointment that the Fed rhetoric was not more hawkish, they said.
The Fed did project the equivalent of quarter-percentage-point rate increases at each of its six remaining policy meetings this year but that was in line with market expectations for rates.
Yields on 10-year U.S. Treasuries reached 2.2% and two-year yields rose to 1%, flattening the yield curve.
The Bank of England meets on Thursday and markets expect it to raise rates by another quarter point.
On technical fronts USDCAD RSI stood at 48.03 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss: