BOC’s Macklem comments in a Globe and Mail article

• Inflation is going to be around 3% going forward
• Surprised by ongoing strength in demand in the economy, and persistence of underlying inflationary pressures
• Labor markets have eased a bit but remained a very tight
• Our forecast has inflation hovering around 3% for next year and then gradually moving back to 2% target
• Need to see a better balance in the labor market and we need to see wage growth moderate

Despite the more hawkish tilt, the USDCAD is trading to a new session high. The price moved above its 100-hour moving average at 1.31937. Its 200-hour moving average looms above at 1.3242. The price is also above its 38.2% retracement of the move down from last week’s high. That level comes in at 1.31937.

For an updated view of the technicals as we head into the close and into the new trading week, click on the video below.

This article was written by Greg Michalowski at www.forexlive.com.