Trades to new session highs
The USDCAD's initial reaction was lower but the uncertainty from Poloz has weakened the CAD (USDCAD) higher. The probability of a move is down from 60.8% to 58.2% on the initial reaction suggesting the central bank head has not tipped his hand in a grand way.
Nevertheless, the market is giving a slightly more dovish slant.
Technically, the pair is above the 100 hour MA and up testing some of the swing highs from last week in the 1.33.349-455 area. A move above looks toward the 1.3375-807 area. The 1.3375 is the 50% of the move down from the 2016 high. The 1.33807 was the spike high after the weaker retail sales and CPI last week.
