Despite the slow start, Canada accelerates the vaccinations and according to the prime minister, it is only the start. Meanwhile, Canada’s GDP announced much better than the Bank of Canada’s projections. These combined are giving Canadians a spring optimism. Consumer confidence rose to 3-year highs ahead of tomorrow’s BOC meeting. The markets don’t expect a policy change from the Bank of Canada, instead, they may change their forecast in the light of new data and acknowledge the recovery.
CAD is staying strong despite the dollar index’s recent surge. The price is currently testing the white trend line, 1.2675. If USDCAD stays below this resistance. Downward moves will continue. 1.2590 is the first major support. Breaking of this support may open the way to 1.24.
For upside moves, above 1.2675 resistance, the 100-day moving average can be followed as a possible target.