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
1.10909
1.10913
Trade
GBPUSD
1.31616
1.31621
Trade
AUDUSD
0.63565
0.63570
Trade
USDJPY
146.007
146.011
Trade
USDCAD
1.40788
1.40793
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

Forex Analysis

USD/CHF Falls to Its Lowest Level in Nearly Five Months

Today, the exchange rate of one US dollar against the Swiss franc dropped below 0.87000 francs—its lowest level since early November 2024.

Since the start of 2025, the USD/CHF pair has declined by more than 4%.

Why

Indices

S&P 500 Index Hits 2025 Low Following Trump's Tariff Announcement

As shown on the S&P 500 Index (US SPX 500 mini on FXOpen) chart, the benchmark US stock index dropped below 5,450 points for the first time in 2025. This decline reflects the US stock market’s

Forex Analysis

Interest in the Dollar Declines Amid Trump's Escalating Trade Wars

The tariffs introduced by Trump yesterday on imports from various countries—20% on the EU, 34% on China, and 46% on Vietnam—have heightened uncertainty in the currency markets. As expected, these measures have contributed to increased volatility in major