The Canadian dollar inched higher on expectations of aggressive tightening by the Bank of Canada.
The US counterpart has given up all its gains from earlier this year. In turn, this indicates a lack of commitment from the buy-side. A tentative rally above 1.2590 has failed to secure follow-ups, further undermining the US dollar.
1.2400 is the next target after a drop below 1.2450 and a deeper correction would send the price to October’s lows around 1.2300. A rebound could be capped by fresh resistance at 1.2520.
