BOC

USD/CAD drops towards the monthly low (1.3829) as the Bank of Canada (BoC) keeps its benchmark interest rate at 2.75%.

USD/CAD may face increased volatility ahead of Canada’s federal election should the Bank of Canada (BoC) adjust the forward guidance for monetary policy.

USD/CAD has been showing neutral price action in the short term. Over the last five sessions, price fluctuations have barely reached a 0.5% variation, as the pair continues hovering around a key barrier near the 1.43289 level.

The USD/CAD maintains a slightly bullish bias, accumulating a gain of over 0.7% in the last five sessions, favoring the U.S. dollar.

USD/CAD has reversed off yesterday’s highs to trade back in the middle of its late-December through January range in the 1.4300-1.4500 zone on the BOC rate cut and latest tariff headlines.

Implied volatility for USD/CAD is slightly elevated over the next 24-hours, due to a Bank of Canada (BOC) rate decision and CPI figures from the US. But it could have been higher were it not for Canada bowing to Trump's threats over tariffs.

USD/CAD further retrace the decline from earlier this month as the Bank of Canada (BoC) is expected to deliver another 25bp rate-cut.

The upcoming US CPI data and ongoing trade war developments are expected to be the key drivers of market movements this week. Chinese deflation risks further fuel concerns about a global decline in economic confidence.

USD/CAD seems to be unfazed by the Bank of Canada (BoC) rate cut as it consolidates ahead of the Federal Reserve interest rate decision.

USD/CAD trades to a fresh yearly high (1.4200) as it retraces the decline following the Bank of Canada (BoC) meeting.

The Bank of Canada (BoC) meeting may produce headwinds for the Canadian Dollar as the central bank is anticipated to deliver another rate-cut.