Loonie strengthens against greenback after Bank of Canada rate decision

The Canadian dollar advanced against its U.S. counterpart for a second straight session after the Bank of Canada decided to hold its interest rate.

After the surprising rate cut in January, the bank opted to leave its benchmark interest rate on hold at 0.75 percent after signs of improvement in the last three months of 2014.  

Data released yesterday showed that the Canadian economy grew an annualized 2.4 percent in the three months through December last year.   

Investors think now the economy has started to recover from the oil fall shock, which weighed heavily on the countries revenues.

Meanwhile, the USDCAD is trading around 1.2487 after touching a high and low of 1.2541 and 1.2431 respectively.

The awaited NFP report due on Friday, which may signal U.S. employers added 240,000 jobs in February, is likely to shape the movement of the pair.

From a technical point of view, the fall below SMA 50 helped the pair to resume its fall for a second straight session.  

The pair has formed a descending Triangle classical pattern that needs to be activated with the breach of the support line of the Triangle.