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The USD/CAD jumped by more than 50 pips after the decision of the Bank of Canada and climbed to 1.3425, reaching the highest level since last Friday.
The Bank of Canada, as expected, raised the key interest rate by 25 basis points to 4.5%. In the statement, the central banks mentioned that will likely hold rates at this level while assessing the impact of recent policy moves
The Loonie weakened across the board. The USD/CAD rose from 1.3365 to 1.3426. It then pulled back. Loonie’s crosses remain volatile as market participants digest the decision.
The USD/CAD withdrew under 1.3400 after a few minutes. The pair needs to stay above 1.3400 to keep the gates open to more headways over the following hours. The next resistance stands at 1.3440. The critical support is the 1.3340 area, and a lower break could trigger a bearish acceleration toward 1.3300.
