USD/CAD is down under 1.3800 in line with the recovery in risk assets, BBH FX analysts note.
BOC easing in the next 12 months is a headwind for CAD
We don’t expect new material information from the Bank of Canada’s (BOC) Summary of Governing Council deliberations later today (6:30pm London). At the July 24 meeting, the BOC slashed the policy rate 25bps to 4.50% but signaled more cuts are in the pipeline.
The swaps market is pricing a total of 150bps of BOC easing in the next 12 months which is a headwind for CAD. USD/CAD is down under 1.3800 in line with the recovery in risk assets.
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
Editors’ Picks
AUD/USD remains heavy near 0.6250 as Trump tariff talks spark risk aversion
AUD/USD is off the lows but remains under intense selling pressure near 0.6250 in Tuesday's Asian trading. The pair loses ground after US President Donald Trump announed his intent to impase 25% tariffs on Mexico and Canada, which triggered risk aversion across the board, smashing the higher-yielding Aussie.
USD/JPY reverses a quick dip below 155.00 amid Japanese verbal intervention
USD/JPY reverses a quick dip below 155.00, led by Japanese verbal warnings. The pair holds losses as the safe-haven Japanese Yen gains on Trump tariff threats while BoJ rate hike bets also underpin the local currency.
Gold buyers look to $2,750 on Trump’s tariff threats
Gold price builds on its rebound to retest monthly highs of $2,725 early Tuesday. Gold buyers are back in action alongside US President Donald Trump’s tariff threats, fuelling risk-off sentiment across the financial markets.
BNB and Avalanche show weakness as Trump takes the Oval Office
Altcoins BNB and Avalanche continue to trade down on Tuesday after declining 6% and 13%, respectively, since Saturday. Furthermore, the technical outlook also supports a bearish trend as both altcoins show signs of weakness in momentum indicators.
GBP/USD gains ground ahead of UK labor figures
GBP/USD rose 1.35% on Monday, gaining ground and climbing back over the 1.2300 handle as markets breathe a collective sigh of relief after freshly-minted US President Donald Trump made a last-minute pivot away from a broad, sweeping policy of day-one trade tariffs.
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.