The Loonie eased from the weekly top to 1.275 during the initial Asian session on Wednesday. In doing so, the Loonie pair steps back from the convergence of the 50-SMA and one-week-long descending trend line ahead of the key Bank of Canada (BOC) monetary policy meeting.
Although the BOC is up for the first rate-hike since 2017, the action has mostly been priced-in, which in turn favors the odds of the pair’s run-up should the forward guidance disappoint traders.
Looking forward for today, the US will release its ADP Non-Farm Employment Change and in Canada the Overnight Rate will be announced.
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