USD/CAD sticks to modest gains near 1-1/2 month tops, around 1.3200 handle post-BoC

   •  As was widely expected, BoC stands pat and does little to provide any meaningful impetus.
   •  The ongoing USD retracement seemed to cap any immediate up-move.

The USD/CAD quickly reversed a dip to 1.3155 area, with bulls making a fresh attempt to build on the momentum beyond the 1.3200 handle post-BoC.

At its latest monetary policy meeting on Wednesday, the Bank of Canada decided to leave the key benchmark interest rate unchanged at 1.50%. The decision was on expected lines and did little to provide any meaningful impetus to the Canadian Dollar.

The pair, however, struggled to gain any strong traction amid the ongoing US Dollar retracement, triggered by a sudden upsurge in the British Pound following the latest positive Brexit headlines. 

The negative factor, to some extent, was offset by a modest fall in crude oil prices, which tend to undermine demand for the commodity-linked currency and eventually helped limit any immediate sharp downside. 

With today's key event risk out of the way, the pair remains at the mercy of broader market sentiment surrounding the greenback as market participants now start repositioning for Friday's closely watched US non-farm payrolls data.

Technical levels to watch

On a sustained move beyond the 1.3200 handle, the pair is likely to aim towards testing its next major hurdle near the 1.3275-80 supply zone ahead of the 1.3300 round figure mark. On the flip side, the 1.3155-50 region might continue to protect the immediate downside, which if broken might prompt some additional long-unwinding trade and drag the pair further towards the 1.3100 handle.