The Canadian dollar weakened on Thursday after FED Chair Powell hawkish speech and downward moods prevail today amid China's worsening Covid-19 outbreak which pushed oil prices lower and supported USD. Also comments from BOC Chairman Macklem did not change market sentiment towards Loonie as he did not offer any new information.
Macklem said that BOC will consider another 50 bps hike in June and price increases aren't as transitory as he said they would be last year, however in his view inflation is close to a peak.
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USDCAD pair climbs higher after breaking above local resistance at 1.27 which coincides with 38.2% Fibonacci retracement of the upward wave launched in October 2021 and upper limit of 1:1 structure. If current sentiment prevails, major resistance at 1.28 may be at risk. Source: xStation5
