On Friday (Oct 28), / fell back from high, temporarily traded at 1.3539, down 0.23%.
The decision came a day after an unexpected slowdown in the pace of rate hikes, to just 50 basis points.
In its statement, the Bank of Canada predicted economic growth would stall at the end of this year and the first half of next year, falling from 3.25 per cent this year to less than 1 per cent next year.
Expectations of a rate rise by the Bank of Canada receded, prompting speculation of an end to tightening.
The Bank of Canada raised interest rates by 0.50%, higher than the expected 0.75%, adding to the optimism among policymakers and keeping USD/CAD bears hopeful.
Usd/CAD bearish MACD signal joins the pair’s ongoing trade around the 21-DMA resistance of 1.3700, keeping sellers hopeful.
However, the daily close below the 1.3505-3495 support area seems warranted to confirm further downside.
