BOCs Macklem is testifying before the House of Commons standing committee of finance and says:

  • There is a limit to how far US and Canadian interest rates can diverge.
  • Certainly we are not close to that limit
  • When asked when rates are coming down, reiterated that the BOC is looking for reassurance that recent fall in underlying inflation will be sustained
  • Canadian inflation will likely stay close to 2.9% for the next several months, partly due to gasoline prices.

Looking at the USDCAD, the price is trading near a cluster of moving averages including its:

  • 200-hour moving average at 1.36966
  • 100-hour moving average at 1.3706
  • 100 bar moving average on the 4-hour chart at 1.37210

The 38.2% retracement of the April trading range, and a swing area between 1.37146 and 1.3728 is also in play. The pair is at a neutral technical area and awaiting the next shove.