BOCs Macklem is on the wires saying:
There is a limit to how far US and Canadian interest rates can diverge. Certainly we are not close to that limitWhen asked when rates are coming down, reiterated that the BOC is looking for reassurance that recent fall in underlying inflation will be sustainedCanadian 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 1.36966100 hour moving average at 1.3706100 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.
This article was written by Greg Michalowski at www.forexlive.com.