CAD/CHF slide accelerates amid BOC´s Poloz dovish comments
- BoC´s Poloz dovish comments weaken the CAD.
- CAD/CHF is down 150 pips since the start of the week.
- SNB rate decision on Thursday at 8.30 GMT.
The CAD/CHF is currently trading at around 0.7276 after losing approx 150 pips since the start of the week.
The CAD has seen a fresh wave of selling on Tuesday as the Bank of Canada’s Governor Poloz made some dovish comments during a speech. He argued that the Canadian economy wouldn´t be able to grow without creating inflation. He additionally said that the BoC is data-dependent, reminding the market that the central bank is waiting to reach its targets before considering doing any hike. Also affecting the CAD are lower oil prices which have been sliding since the start of the year. Canada’s economy is essentially based on the oil industry and lower crude prices affect negatively the Canadian economy.
Moving to the Franc, the Swiss National Bank interest rates´ decision and quarterly bulletin are slated on Thursday at 8.30 GMT. According to analysts, the SNB has no intention to make any changes and rates should stay on hold.
CAD/CHF 4-hour chart
Technically, the CAD/CHF retraced below its 61.8% Fibonacci retracement level from the March 5-9 bullish move. The next key support zone is the 0.7225-0.7250 area, a cyclical low. A clear break below that level would open the doors for a test of the 0.7000 figure. Resistance is seen at the 100-period SMA (chart above) at the 0.7350 level, followed by the 0.7425 level which is the cyclical high and the high of the week.