We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.39% Gold: 0.23% Oil - US Crude: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/iAnM8l2y2N
  • $USD: US Dollar Outlook Hinges on FOMC Guidance, Fed Balance Sheet Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/10/us-dollar-outlook-hinges-on-fomc-guidance-fed-balance-sheet.html -via @DailyFX https://t.co/1kDzd3IcPY
  • $CAD $MXN https://t.co/JtihyAuAhY
  • Senator Mcconnell says the Senate will not finish the USMCA before 2020 $SPX $DXY $CAD $MXN -BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 76.96%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/PYu9xhQXLN
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.09% France 40: 0.09% US 500: -0.01% Wall Street: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8jftlGtYTv
  • Here is my scenario table for the #FOMC rate decision tomorrow. Will be covering it live if you want to come and join (starting 15mins before the decision): https://t.co/d6QBYyVd9N https://t.co/zZzdCwXMFa
  • Update on #Cryptocurrencies #BITCOIN -2.00% #BITCOINCASH -1.14% #ETHEREUM -1.87% #RIPPLE -1.34% #LITECOIN -1.23%
  • RT @CVecchioFX: A question I frequently get asked these days is, "Is it realistic to believe that the US Dollar can lose its role in the gl…
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
Canadian Dollar Swoons in Response to Dovish Bank of Canada Remarks

Canadian Dollar Swoons in Response to Dovish Bank of Canada Remarks

2019-04-24 14:38:00
Rich Dvorak, Junior Analyst


  • 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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.