The Canadian Dollar (CAD) is holding close to Tuesday’s closing level ahead of the Bank of Canada policy decision. The Bank is widely expected to cut its Overnight rate 25bps to 4.25%. This is a policy statement (9.45ET)/press conference (10.30ET) meeting, with the next MPR update due on October 23rd, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

A push above 1.3575 to push USD even higher

“The easing cycle has some way to go yet in all likelihood so policymakers are likely to sound dovish. Markets are pricing in sequential cuts from the BoC over the remainder of the year so dovishness may help keep the CAD tone corrective after its recent rebound but is unlikely to drive it significantly lower. Assuming no surprises today, attention may shift quickly back to the USD and the Fed outlook.”

“USD/CAD’s estimate fair value sits at 1.3616 today, suggesting some modest upside risk for the USD, all else equal. Governor Macklem has a busy September ahead of him. Speeches are scheduled for September 10th, 20th and 24th. Corrective USD gains have stalled about where I expected them too, at least for now. Intraday price action is neutral and leaning bearish for the USD at this point, with spot gains finding a little more resistance in the mid/upper 1.35 area.”

“Short-term momentum remains with the USD, however, and (non-technical) factors today suggest upside risks remain for spot. A push above 1.3575 resistance allows the USD to appreciate a little more to 1.3635 (38.2% retracement of the USD’s August drop) and potentially towards the mid/upper 1.36s. Support is 1.3515/20.”

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD under pressure below 1.0400 on persistent USD strength

EUR/USD under pressure below 1.0400 on persistent USD strength

EUR/USD remains deep in the negative territory below 1.0400 on Tuesday, erasing a portion of Monday's gains. The pair is undermined by risk aversion and the persistent US Dollar demand, fuelled by US President Trump's tariff threats.

EUR/USD News
GBP/USD stays below 1.2300 after UK employment data

GBP/USD stays below 1.2300 after UK employment data

GBP/USD stays under bearish pressure and trades below 1.2300 on Tuesday as the USD preserves its strength following US President Trump's tariff threats. The data from the UK showed that the ILO Unemployment Rate edged higher to 4.4% in the three months to November.

GBP/USD News
Gold trades at multi-month highs above $2,720

Gold trades at multi-month highs above $2,720

Gold gathers bullish momentum and trades at its highest level since early November above $2,720 on Tuesday. The benchmark 10-year US Treasury bond yield is down more than 1% below 4.6% following US President Trump's tariff threats, helping XAU/USD hold its ground.

Gold News
Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.

Read more
Prepare for huge US trade changes as Trump goes America first

Prepare for huge US trade changes as Trump goes America first

You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures