In its last monetary decision from the 9th of January of 2019, the BOC decided to maintain its overnight rate at 1.75% and one of the main reasons for that was the same concern for global growth, owing to the US/China trade tensions. Furthermore, this decision was also affected by concerns over the global demand for Oil, since Canada is one of the biggest producers of Crude WTI.
The BOC also expressed concerns over the sustained increase in US oil supply, which has been reflected by resulting lower prices and woes for aggregate global demand.
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As we can see from the above 4H chart of the USDCAD, the price action has been contained within a parallel bearish channel. The price is currently trading around the fundamentally important resistance level at 1.33296.
We are yet to see what the future holds for the range, following Bank of Canada's statement after Wednesday's decision, and whether the resistance level would hold once again only to boost the price into a bearish downswing once again.
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