News & Analysis / Analysis / USD/CAD Analysis: Bank of Canada Cuts Interest Rate by 0.25%

USD/CAD Analysis: Bank of Canada Cuts Interest Rate by 0.25%

FXOpen

This occurred yesterday and was in line with analysts' forecasts, according to a Bloomberg survey.

According to statements from the Bank of Canada:
→ Price growth indicators for consumer price index components have further decreased and are close to their historical average;
→ Recent data has increased confidence that inflation will continue moving towards the 2% target;
→ Monetary policy no longer needs to be as restrictive.

At the press conference, Governor Tiff Macklem stated that there is “compelling evidence” of weakening inflation and it is “reasonable to expect” further rate cuts if inflation continues to slow.

Technical analysis of the USD/CAD chart:
→ Since mid-April, the market has been in a downtrend (indicated by red lines);
→ Simultaneously, a longer-term uptrend is shown by the blue channel;
→ Overall, the price is being squeezed into a symmetrical triangle between the upper red and lower blue lines, with the axis around the 1.3671 level acting as a "magnet," indicating a stable balance of supply and demand. Yesterday’s news caused a spike in volatility, with the USD/CAD price attempting to break the upper boundary, but the breakout was false (indicated by an arrow), and the price returned to the axis where it was before the announcement.

Thus, it can be concluded that the market had anticipated the rate cut, and it was not a surprise. This means that fluctuations within the triangle may continue until a fundamental event occurs that can lead to a breakout of this consolidation pattern in technical analysis.

Analysts at Think.ING predict a possible decline in the USD/CAD rate to the 1.35 level in the second half of 2024.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.09173
1.09174
Trade
GBPUSD
1.27367
1.27369
Trade
AUDUSD
0.59926
0.59927
Trade
USDJPY
147.894
147.898
Trade
USDCAD
1.42396
1.42406
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Market Insights with Gary Thomson: FOMC Minutes, US Inflation Rate, US PPI, Earnings Reports
Financial Market News

Market Insights with Gary Thomson: FOMC Minutes, US Inflation Rate, US PPI, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

Forex Analysis

NZD/USD Analysis: Exchange Rate Nears 2025 Low

Less than a month ago, we analysed the NZD/USD chart and:
→ highlighted the key resistance level at 0.5800;
→ outlined a potential scenario involving a decline from that zone.

Now, the NZD/USD pair is trading close to its

Indices

Nasdaq 100 drops to its lowest level since January 2024

According to the chart of the Nasdaq 100 (US Tech 100 mini on FXOpen), the index opened this week around the 16,500 mark – a price level last seen in early 2024.

This suggests that the sharp sell-off in equities

CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva.CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva. Il 72.81% dei conti degli investitori al dettaglio perde denaro quando fa trading di CFD con questo fornitore. Dovresti considerare se capisci come funzionano i CFD e se puoi permetterti di correre il rischio elevato di perdere i tuoi soldi. Dovresti considerare se capisci come funzionano i CFD e se puoi permetterti di correre il rischio elevato di perdere i tuoi soldi.