USD/CAD rises to new session highs on Poloz comments

After spending most of the day in a 30-pip channel below 1.3250, the USD/CAD pair caught some fresh bids in the NA session following the BoC Governor Poloz's opening statement before the Standing Senate Committee on Banking, Trade and Commerce. The pair leaped to a new session high at 1.3275 and is now trading at 1.3265, up 0.12% on the day.

Speaking about the Bank’s Monetary Policy Report (MPR), which was published yesterday, Poloz argued that some of the recent strength in the economy is coming from temporary factors and the heightened levels of uncertainty related to US tax and trade policies continue to create risks. Regarding the labor market, Poloz said that the data suggest that material slack remains.

• BoC's Poloz's opening statement before the Standing Senate Committee on Banking, Trade and Commerce - full text

Moreover, WTI crude oil's recent rise seems to have stalled above the $53 mark, not providing any fresh impetus for the loonie. On the other hand, the US Dollar Index is preserving the recovery gains around 100.40 amid positive macro data from the United States. On Thursday, initial jobless claims came in at 234K, beating the expectations of 245K and the Michigan Consumer Sentiment Index advanced to 98 from 96.9 in April.

Technical outlook

The pair faces the first technical resistance at 1.3315 (50-DMA) before 1.3360 (50-DMA) and 1.3455 (Apr. 4 high). To the downside, 1.3250 (200-DMA) could be the first support for the pair followed by 1.3200 (psychological level) and 1.3160 (Feb. 28 low).