The BoC delivered the widely exp......>

DOLLAR-CANADA: The BoC delivered the widely exp. 25bp hike, dropping the word

gradual from its communique re: rate hikes, which had been debated previously.

Gov. Poloz went on to note that this could mean raising rates faster or slower,

based upon data. Snr Dep. Gov. Wilkins noted that the removal of the phrase

occurred in order to avoid the impression of a pre-set path for rates. The Bank

also noted that policy rates remain stimulative & that the policy rate is

negative in real terms, alluding to no real need for such supportive measures.

- USD/CAD last C$1.3045, after registering a low of C$1.2970 on Wednesday. Bears

will be frustrated by the lack of follow through below C$1.3000, after the rate

closed above its 50-DMA (C$1.3014), which now provides initial support. Initial

resistance is located at the 100-DMA (C$1.3071).