USD/CAD erases post-BoC gains, backs away from 1.3000

• Cautions tone from BoC weighed on CAD. 
• USD/CAD capped by 1.3000. 
• Key data ahead: US and Canadian jobs data on Friday. 

USD/CAD rose to the 1.3000 area following the decision of the Bank of Canada to keep rates unchanged and also amid a stronger US Dollar. The pair reached 1.3000 and started to retreat. Near the end of the session is hovering around 1.2920, around the same level it had before the BoC statement. 

The Canadian central bank left the key interest rate unchanged at 1.25% as expected. In the statement, it offered a cautious tone and warned about potential uncertainty from trade policies in the US. The loonie pulled back afterwards until USD/CAD reached 1.3000. 

During the last hours, the pair dropped on the back of a recovery of the CAD and amid an intraday correction of the greenback. 

Regarding data, the next relevant day is Friday, with the release of the US and the Canadian jobs report. 

Levels to watch 

Recently USD/CAD reached 1.2899 and rebounded modestly. The pair continues to move undecided around 1.2900. Overall the bullish tone remains intact, a sharp retreat under 1.2860 could open the doors for a bearish correction. 

To the upside above 1.2960, the US dollar is likely to test again 1.3000, above the next resistance is seen at 1.3015 and 1.3050.