USD/CAD: Hawkish-sounding run through of BoC’s latest thinking might give Loonie more support – Scotiabank

USD/CAD test support in low 1.33s. Economists at Scotiabank analyze the pair’s outlook.

Firm resistance at 1.3350/1.3360

The BoC’s Summary of Deliberations for the December 6th policy decision is released today. The last summary of the policy-making discussion noted that policymakers ‘needed to see downward momentum in core inflation to be confident that monetary policy was sufficiently restrictive’ to get inflation back on target. A somewhat hawkish-sounding run through of the BoC’s latest thinking might give the CAD a bit more support.

The charts suggest firm resistance at 1.3350/1.3360, with stronger resistance at 1.3400/1.3450. 

Support is 1.3330/1.3335 and 1.3280.