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USD/CAD regains 1.2500

FXStreet (Mumbai) - USD/CAD continued its ascent in the late-Asian session, recovering from upbeat Canadian GDP backed losses and clawed back above 1.2500 levels ahead of the Bank of Canada (BOC) interest rate decision scheduled later today.

USD/CAD rises from 1.2480 levels

Currently, the USD/CAD trades flat at fresh session highs at 1.2508 levels, having previously posted day’s low at 1.2480. The pair reversed losses and defended mild gains as traders remain cautious anxiously awaited Wednesday's BOC interest rate announcement. The loonie is expected to remain supported after the Canadian economy surprised the markets on the upside, as it expanded 2.4% in Q4, which came in above consensus. The better- than expected data signaled that the bank might wait before lowering the rate again, which may boost the Canadian dollar versus the US counterpart.

Moreover, steady crude prices ahead of inventory report and US jobs data are also supportive of the loonie, weighing on USD/CAD.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.2545 levels and above which it could extend gains 1.2566 levels. To the downside immediate support might be located at 1.2450 levels, below that at 1.2404 levels.

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