More from BOC Macklem: Higher rates will continue to restrain household spending

More from BOCs Macklem:

• Higher rates will continue to restrain household spending
• We are taking that into account as we think about what rates need to be to get inflation back to target.

The focus today has been on the USD as it has declined after the US initial jobless claims showed some weakness. However, it takes two to tango.

Technically, looking at the USDCAD (see video from earlier today), the pair moved below the cluster of MAs (and the broken 38.2%) between 1.36997 and 1.3610. That area will need to be re-broken to shift the bias more to the upside.

On the downside, there is support near a swing area between 1.3654 and 1.3668. The 200-bar moving average on the 4-hour chart comes in at1.3662 between those levels,

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