Daily Currency Update

CAD - Canadian Dollar

The Greenback versus the Loonie fell 0.33 percent ( a stronger Loonie) following a fall in the US dollar index as we await the Bank of Canada (BoC) to echo its "accommodative" attitude during its announcement. The BoC is expected to keep its rate unchanged when the latest decision is announced in a few minutes at 10:00 am Est. At the same time in the U.S., Powell will commence his testimony and wholesale inventories data for May will be announced. Fed St. Louis President James Bullard will speak at 1:30 pm Est.

Regarding the BoC announcement, positive economic data should offset constant trade uncertainty; therefore, chances for a dovish shift might be limited.

Technically speaking, the USD/CAD pair has important supports at around 1.3045 and the 1.3000 handle. At the same time, it has a first resistance at 1.3125 and a second resistance around 1.3171. The support and resistance levels will depend on the BoC announcement in a few minutes.

Key Movers

Fed Chair Powell will kick off his semi-annual monetary policy testimony to Congress in a few minutes at 10 am Est this morning. He is expected to stick to the line that the bank will "act as appropriate," which is an attitude that should bolster a rate cut at the July 30-31 meeting. He might also show support for the Fed’s independence, as lawmakers will probably ask him about the chronic assessment from President Donald Trump.

Another key driver will be the minutes from the last FOMC policy meeting, which will be released at 2:00 pm Est.

Expected Ranges