USD/CAD soars close to 1.3800 as BoC keeps interest rates unchanged at 5%

The USD/CAD pair jumps vertically to near 1.3800 as the BoC keeps interest rates steady at 5%.
An interest rate decision from the BoC was widely anticipated.
The oil price drops oil price as Israel’s ground assault in Gaza delays for safe dispatch of humanitarian aid.

Sagar Dua FXStreet

The USD/CAD pair surges to near 1.3800 as the Bank of Canada (BoC) has kept interest rates unchanged at 5%. BoC Governor Tiff Macklem announces a neutral interest rate decision for the second time in a row.

A neutral monetary policy announcement was widely anticipated by the BoC as inflation in Canada is consistently softening and labor market conditions are easing. The Canadian economy is operating at 3.8% inflation, which is almost double the desired rate of 2%.

The S&P500 opens on a bearish note amid volatility prompted by quarterly earnings and persistent fears of widening conflicts in the Middle East. The risk profile is downbeat as expectations of Iran’s intervention in the Israel-Palestine conflict are alive.

Meanwhile, the US Dollar Index (DXY) gathers strength for a fresh move above the immediate resistance of 106.50. The USD Index regains traction as investors shift focus to the crucial US economic readings this week. The release of the US Q3 Gross Domestic Product (GDP) and core Personal Consumption Expenditure (PCE) inflation for September could impact the interest rate decision by the Federal Reserve (Fed), which will be announced on November 1.

As per the expectations, the US economy grew by 4.2% in the July-September quarter, almost double the growth rate registered in the same period in 2022. An upbeat GDP report could escalate hopes of one more interest rate increase from the Fed.

On the oil front, the oil price delivered a bearish closing for three trading sessions in a row as Israel’s ground assault in Gaza was delayed for the safe dispatch of humanitarian aid.

USD/CAD

Overview
Today last price	1.3807
Today Daily Change	0.0067
Today Daily Change %	0.49
Today daily open	1.374

Trends
Daily SMA20	1.3651
Daily SMA50	1.3589
Daily SMA100	1.343
Daily SMA200	1.3474

Levels
Previous Daily High	1.3755
Previous Daily Low	1.3661
Previous Weekly High	1.3741
Previous Weekly Low	1.3606
Previous Monthly High	1.3694
Previous Monthly Low	1.3379
Daily Fibonacci 38.2%	1.3719
Daily Fibonacci 61.8%	1.3697
Daily Pivot Point S1	1.3683
Daily Pivot Point S2	1.3625
Daily Pivot Point S3	1.3589
Daily Pivot Point R1	1.3776
Daily Pivot Point R2	1.3812
Daily Pivot Point R3	1.387

(This story was corrected on October 25 at 14:21 GMT to add that the pair has surged to near 1.3800.)

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.