Canadian dollar touches 3-week lows

USDCAD jumped to three-week high amid mounting worries about surging global COVID-19 cases. Meanwhile BOC held its benchmark interest rate at the effective lower bound of 0.25%, which came in line with expectations. The Bank projected an economic contraction of about 5.5% in 2020, to then expand by almost 4% on average in 2021 and 2022, a slower pace than previously forecast. Central Bank also amended the QE program to shift purchases towards longer-term bonds and believes that the second wave of COVID-19 infections is poised to cause a “more pronounced” near-term slowing in the recuperation phase.

USDCAD - currency pair is testing the major resistance at 1.3330. If buyers manage to break above it, then upward impulse could be extended towards 1.3421. On the other hand, once sellers regain control, the support at 1.3260 may be at risk. Source: xStation5

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