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

DOLLAR-CANADA: The BoC delivered the widely exp. 25bp hike yesterday, 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$1.3030, 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).

- The rate had a look at the aforementioned 50-DMA overnight, registering a low

of C$1.3016 as China pointed to additional support of the country's equity

markets, but the move lacked any real conviction.