USD/CAD jumps to 1.3415 after BoC 50bps rate cut


  • Canadian dollar falls across the board after Bank of Canada cut rates by 50bps. 
  • USD/CAD could post highest daily close since June if ends above 1.3400. 

The USD/CAD pair rose from a daily low of 1.3327, reached seconds before the announcement of the Bank of Canada’s (Boc) policy decision, to 1.3416, hitting the highest level since early Monday. 

The BoC reduced the key interest rate by 50 basis points to 1.25%. A cut was expected, the question was by how much. The move was more dovish than expected and weakened the loonie

As of writing, USD/CAD is hovering around 1.3400, holding above the 1.3390 resistance. A consolidation above 1.3400 could clear the way to more gains. The next resistance might be seen at 1.3435 and then at 1.3465 (last week high). While if the pair manages to slide back below 1.3390, the bullish pressure will likely ease. 

Prior to the decision, since Monday’s Asian session, the pair was moving in a range between 1.3390 and 1.3315. While currently trading above the upper limit, a confirmation of the breakout is yet to be seen. A somewhat weaker US dollar on Wednesday against commodity currencies, lower US yields, and the recovery in crude oil, could limit gains for USD/CAD. On the flip side, is the dovish statement from the Bank of Canada. 

Technical levels 

USD/CAD

Overview
Today last price 1.3333
Today Daily Change -0.0037
Today Daily Change % -0.28
Today daily open 1.337
 
Trends
Daily SMA20 1.3293
Daily SMA50 1.3175
Daily SMA100 1.3183
Daily SMA200 1.321
 
Levels
Previous Daily High 1.3387
Previous Daily Low 1.3319
Previous Weekly High 1.3465
Previous Weekly Low 1.3225
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.3361
Daily Fibonacci 61.8% 1.3345
Daily Pivot Point S1 1.3331
Daily Pivot Point S2 1.3291
Daily Pivot Point S3 1.3263
Daily Pivot Point R1 1.3399
Daily Pivot Point R2 1.3427
Daily Pivot Point R3 1.3467

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures