Never miss a story from Rich Dvorak

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Rich Dvorak

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.


  • USDCAD moves sharply higher following the latest monetary policy update from the Bank of Canada
  • BOC Governor Poloz provided dovish supplementary commentary to the central bank’s interest rate decision which is weighing negatively on CAD currency crosses
  • Searching for ways to apply your currency market knowledge? Check out this free educational guide on Forex News Trading

The Bank of Canada just announced that it will leave its policy interest rate unchanged at 1.75 percent as expected. However, the Canadian Dollar is coming under pressure due to dovish language found in the accompanying press release.


USDCAD Price Chart after Bank of Canada Interest Rate Decision

The BOC’s governing council said that “an accomodatitve policy interest rate continues to be warranted” and appears to beslightly more dovish than March’s language which read “outlook continues to warrant a policy interest rate that is below its neutral range.”

Ongoing risks to global trade relations dragg down business sentiment and activity were repeated. This was previously mentioned by the BOC in its Business Outlook Survey Indicator released last week which fell to its lowest level since 3Q 2016.

Take a look at this article covering Canadian Dollar Technical Outlook for USDCAD, CADJPY, and GBPCAD.

On a brighter note, Poloz stated earlier this month that Canada’s exports were showing signs of strength, particularly in the service sectors which employs roughly 80 percent of Canadians. Moreover, oil prices have climbed nearly 20 percent since the BOC’s last monetary policy update which looks to bolster Canada’s economy due to the country's significant production and export of the energy product.

The central bank expects growth to rebound in the second quarter this year and projects real GDP growth of 1.2 percent. The BOC said that it will closely watch developments across household spending, oil markets and global trade policy to guide its monetary policy decisions. The Bank of Canada’s next monetary policy update is scheduled for May 29.


Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter