Forex: USD/CAD testing 1.0110 offers after new BoC announcement

FXstreet.com (Barcelona) - The USD/CAD is trading on a slightly bid tone following the appointment of Mr. Poloz as the new BOC Governor. After finding a major barrier at 1.0050, failed to be penetrated after up to four attempts since April 30, the exchange rate is now threatening supply area at 1.0123/1.0110, as per the drop-base-drop from April 29/30.

According to Adam Button: "The thinking is that since Poloz comes from a government agency aimed at boosting exports he will be more prone to weaken the Canadian dollar to boost exports. That’s it. If you think it takes a PhD to trade, the geniuses behind the last 25 pip move in the CAD crosses are telling you differently."

In view of TDS analysts: "As yet, there is no obvious sign of a strong bounce. The charts suggest that the 1.0100/05 remains the pivotal resistance on the short-term charts. Above 1.0105 should allow for a decent short-term bounce to the 1.0140/60 range."

There has been a last headline courtesy of Dow Jones referring Mr. Poloz's inflation target view as "sacrosanct" or in christian terms, regarded as too relevant to be interfered with or violated.