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 stays below 1.1800 as markets await Fed speeches

EUR/USD remains trapped in a tight range below 1.1800 in the second half of the day on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on comments from Federal Reserve officials.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold retreats below $5,200 on renewed USD strength

Gold stages a deep correction following Monday's rally and trades below $5,200. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar gathers strength and weighs on XAU/USD ahead of Fed policymakers' speeches.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.