Global macro overview for 14/04/2017:
As widely expected, the Bank of Canada left the interest rates unchanged at the level of 0.50%. Bank of Canada Governor Stephen Poloz said that the BoC will maintain its neutral stance despite an upward revision of economic growth forecasts for this year. Governor Poloz sounded more hawkish than at the January policy meeting when policymakers discussed a possible rate cut. Nevertheless, the central bank stated that the economy continued to operate with excess capacity utilisation and both business investment and pay growth remained subdued. At the end of the statement, Poloz pointed out surging housing prices, especially in Toronto area, adding that the sharp price rise was not driven by any fundamentals. This would mean the beginning of real estate bubble in Canada. In conclusion, a little more hawkish statements from Governor Poloz might be the first clue, that sooner or later the Bank of Canada will follow the path of the US FED.
Let's now take a look at the USD/CAD technical picture at the H4 timeframe. The market bounced strongly from the level of 1.3223 and was capped after 120 pips rally at the level of 1.3339. Currently, the upward momentum is still strong and if the technical resistance at the level of 1.3339 - 1.3357 will be clearly violated, then the next resistance is seen at the level of 1.3455.
