Breaking: BOC delivers a surprise rate cut by 50bps, USD/CAD bounces

FXStreet Team FXStreet

In a surprise move, the Bank of Canada (BOC) announced a cut to its benchmark interest rate by 50bps from 1.25% to 0.75%, making it the second rate cut this month, in an effort to cushion the economic blow from the coronavirus outbreak.

In a coordinated move, Canadian Finance Minister Morneau announced an establishment of a $10B credit facility program, which will be available to businesses and to stimulate the economy.

USD/CAD reaction

On the unexpected rate cut, the Canadian dollar lost the recovery momentum against the greenback, with USD/CAD bouncing back above 1.3900.

At the press time, the spot trades 0.15% higher at 1.3947, as the bulls look to retest the four-year high of 1.3994.

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FXStreet

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