FX Action: USD-CAD has found a footing
FX Action: USD-CAD has found a footing after posting a nine-month low at 1.3016 last Thursday, with markets phasing out expectations for an outsized 50 bp rate cut by the Fed at its upcoming FOMC, which has return support to the U.S. currency. This helped offset any impact that the recent spike in oil prices (following news that a British tanker was seized by Iran in the Straits of Hormuz) might have had on the Canadian Dollar. Taking a step back, USD-CAD is amid an overall bear trend that's been unfolding since late May, with the pair having posted a lower weekly low for seven consecutive weeks. Trend resistance comes in at 1.3064-66. As for the BoC, the central bank maintained a neutral bias at its policy meeting this month as it delivered the widely expected no change in the 1.75% rate setting. Officials did however emphasize that the trade and geopolitical backdrops are clouding the outlook. Policy remains data driven for the BoC, which will "pay particular attention to developments in the energy sector and the impact of trade conflicts on the prospects for Canadian growth and inflation."