CAD: Dancing on a wild tone – RBC CM

Adam Cole, Research Analyst at RBC Capital Markets, notes that the CAD saw a 120pt swing around BoC Governor Poloz’s testimony to the House of Commons Standing Committee on Finance last night.

Key Quotes

“His comment that the “best plan” was to remain on hold “for 18 months” caused a collapse to 1.3277. Later clarification that that the time period refereed to the output gap, not monetary policy, reversed most of the move.

Technically, bullish momentum has stalled near 1.3400. There is a minor resistance level at 1.3402, followed by 1.3446. To the downside, support is located at 1.3273 and 1.3155.”