USD/CAD Experienced Largest Single-day Decline Since March

May 27th from WikiFX News. Overnight USD/CAD rate dropped 228 pips to 1.3773, a new low since March 16th. This has been the largest intraday decline since March.

Bank of Canada‘s outgoing Governor Stephen Poloz maintains a dovish forward guidance before leaving the post, saying that the central bank is “doing the best to ensure a solid foundation for economic recovery”. Poloz is leaving the post in June, and he had previously warned that massive monetary stimulus will be needed for Canada’s economy.

As the Bank of Canada remains open to introducing more unconventional measures, the Canadian dollar may face even more unfavorable risks.

Canada will release on Friday the GDP for Q1, 2020, which is expected to see the greatest decline since the data was first recorded and published in 1961.

USD/CAD daily pivot points: 1.3814-1.3870

S1:1.3700 R1:1.3928

S2: 1.3614 R2:1.4070

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