Bank of Canada

USD/CAD started the week with a fresh 2025 low and if we do see USD bears continue to push, the Canadian Dollar remains of interest. Next week brings BoC and employment reports from both the U.S. and Canada.

Over the past five trading sessions, USD/CAD has depreciated by nearly 1.5% in favor of the Canadian dollar, mainly due to growing market expectations surrounding the upcoming Bank of Canada (BoC) rate decision, along with the recent weakness of the U.S. dollar.

USD/CAD remains an attractive major pair for USD weakness scenarios and a short-term descending triangle keeps the door open for breakdown potential.

How does the soft CPI tilt the odds for tomorrow's Bank of Canada meeting...and what does it mean for USD/CAD?

USD/CAD finished the year above 1.4000 for the first time since 2002. Threats of tariffs from President-elect Trump have had a big impact in USD/CAD, but this can also bring risk to the U.S. side of the equation.

USD/CAD is closing out its strongest year since 2015. But that prior episode led to a mean-reverting market that held for the next nine years.

USD/CAD has found resistance just inside of the 1.4200 handle but the looming threat of tariffs from the U.S. has produced ‘major new uncertainty’ for Canada and investors have responded by continued selling of CAD.

USD/CAD fell back toward key horizontal support near 141.00 as BOC Governor Macklem hinted at a 2025 pause in the interest rate cutting cycle

The CAD/JPY trend has turned negative following this week’s big rally in the yen, while the USD/CAD will be in focus with the release of key US data in the coming days.

As with any central bank, when the Bank of Canada (BOC) changes interest rates, it can have a knock-on effect to stocks, indices and currencies. Find out everything you need to know about the BOC and how it’s decisions impact financial markets.

After a combined 425 basis points worth of hikes, the BOC has already signaled it would pause tightening to let the economy digest impact of previous hikes.